Last year reports from Russia stated that President Vladimir Putin was planning to develop Russkiy Island into a large scale tourist resort. Said to be a response to growing Chinese economic power in the region, the future island tourist resort could become one of Russia’s four gambling zones. Russkiy (or Russky) Island is some 5,800 miles east of Moscow and was once a fortress for Vladivostok in the Primorye (Primorsky Krai) maritime region.

Of the four gambling zones established by the State Duma, only the southern Krasnodor Territory is considered viable by many gaming and tourism experts. Primorye and Altai in Siberia are considered to be primarily of interest to eco-tourists who are unlikely to gamble and gamblers are more likely to fly to Kiev or Riga. Anyone investing in one of the zones will have to build the necessary infrastructure, something unlikely to be achieved before 1 July 2009 when gambling operators outside the zones must close their venues.

Casinos Austria International is rumoured to have expressed an interest in Siberia’s Altai region. An estimated 30 billion rubles (US$1.2 billion) will be needed just to create the infrastructure, making any gambling development a massive undertaking. Russia is hoping that Vladivostok will be chosen for the 2012 Asia-Pacific Economic Cooperation (APEC) summit. If it is, then around US$3.75 billion will be earmarked by Russia for development expenses in that area. Russkiy Island, with its proximity to China, might then become more attractive to investors.

Operators in Russia’s gambling industry are still hoping that the gambling legislation can be revised. With a new President in the Kremlin things could change, but the odds are not good. The State Duma, which voted 440–0 with one abstention for the setting up of the four gambling zones, is not likely to be talked into rethinking its strategy. As the vice-president of the Russian Association of Gambling Industry Employees has commented, official gambling zones may be created but most Russian gambling will take place in the illegal dens that will replace the present operations. (E-03.05.08)

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