Stating that around 80% of Moscow’s gaming establishments were operating illegally, Deputy Mayor Iosif Ordzhonikidze has promised to close some 500 over the next two months. City Hall is determined to follow this policy despite losing tax revenues and potentially causing heavy job losses. Since last November the Moscow authorities have performed an inventory on gaming locales, counting 2,640 venues and over 60,000 gaming options.

In November 2005 a law was passed prohibiting gaming facilities from being near to educational establishments, metro stations and federal property. Many venues contravening the law have already closed or been upgraded to comply. At present the number of gaming outlets in Moscow has been reduced to around 1300 with another 500, according to the Deputy Mayor, to go. City Hall has pledged to help those workers facing job losses to find alternative employment.

The actions of the Moscow authorities have met with mixed reactions even from within the gaming industry. Some see the moves as long overdue and bringing the city closer to a well regulated gambling industry. The top operators should definitely benefit from the closure of the small slot machine businesses in streets, underpasses and stores. Others see the crackdown as precipitate, before a full regulatory system has been implemented. According to the Deputy Mayor’s office, gaming operators have been given time to adapt to the new rules. (E-04.06.06)

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