Those involved in the gambling industry in Russia have been lobbying hard ever since the State Duma in 2006 passed the law to push them into four remote regions. It is now reported that there will be no reprieve for the casinos and other gambling establishments, and that the 1 July deadline in less than two months will stand. By midnight on 30 June gambling activity outside the four zones will be banned.

The Federal Tax Service will be responsible for the administration of gambling and President Dmitry Medvedev this week told the agency chief that delays in the removal of gambling to the zones would not be tolerated. Mikhail Mokretsov has said that the Federal Tax Service is ready and that the gambling industry in Russia is down 42% since the start of this year.

Many gambling facilities in cities such as Moscow already have been made into restaurants, supermarkets, poker halls or other businesses. Prominent operating companies have prepared for the closure of the Russian casinos and slots halls by turning their attention to countries in Eastern Europe and Latin America.

Whatever Medvedev has said, the powerful and influential gambling lobby is unlikely to stop pushing politicians to agree a relaxation of the 2006 law, particularly as the necessary infrastructure in the four designated gambling zones is far from ready. Local authorities will see a sharp fall in revenue when gaming taxes are no longer available and could entail additional costs in an effort to keep illegal gambling out of their districts. (E-05.07.09)

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