It’s not an auction but it may be a done deal that will go far further than the Moscow authorities desired. The campaign to rid the city of many gambling establishments before the end of the year continues, but stronger countrywide measures are proposed. In January there were around 2,770 venues operating in Moscow but 1,915 have already been closed. Another 315 are expected to go by 31 December. The 540 remaining operations will face steep tax increases – from the present 125,000 roubles (US$4,640) to 500,000 roubles (US$18,568) a month.

Central government is suggesting even more radical proposals to cut gambling opportunity in Russia. A bill to push the industry outside centres of population into four designated unpopulated regions will be studied by the Russian Duma. The previously unhampered proliferation of gambling venues, particularly in Moscow, has ended. Gaming machine manufacturers in Russia and beyond must reassess their business plans. Other CIS countries have also taken a strict stance against gambling and a once promising new market for the gaming industry is disappearing.

It has long been argued that Russian gambling should be properly licensed and regulated, but few could have anticipated the lengths to which the authorities seem prepared to push the activity into the wilderness. Moscow was not seeking to remove the gaming industry entirely; just limit gambling operations to well regulated taxable businesses. Should the anti-gambling lobbies prevail, Moscow will lose valuable tax revenue and the problems of gambling addiction will likely be harder to overcome if, as will surely happen, the activity is pushed underground. (E-10.10.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage