Sun International may have abandoned its casino resort project for the Moscow region but some speculators are pushing up the price of real estate in Russia’s named gambling zones. Since the four designated areas were announced, the Primorye region, the Siberian Altai region, the Baltic exclave of Kaliningrad and the southern Krasnodar-Rostov area, some ex-residents are hurrying back to reclaim land.

Investors from all over Russia seem keen to purchase land for hotel and casino development, even before final parameters have been set. From July 2009 the four areas will be the only places in Russia where gambling is legal, and each is looking to become the Las Vegas of the country. Land prices in some of the zones is said to have quadrupled and in the southern area of Rostov and Krasnodor the increase to be tenfold. Others have urged caution as interest may be limited to future hotel development with no indication yet that gaming operators are keen to set up shop in the remote regions.

The big gaming operators that will remain in Moscow until July 2009 are doubtless considering their options. Some will place more emphasis on opportunities overseas; all will be carrying out some extensive market research in Russia before venturing to make a decision. There is also the possibility, with presidential elections before the law takes effect, that the scene will shift again. Two years is a long time in politics and the gaming industry alike. (E-01.30.07)

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