It has been evident for some time that the law restricting gaming in Russia to four zones away from major towns is attracting little interest from operators. The big names in the gambling industry, such as Ritzio, Storm and Unicum have been investing their money in gaming friendly regions such as Latin America, and international operators have yet to be associated with projects for the gambling zones. Lack of available infrastructure and the huge expense of putting it in place makes the proposition of Russian gambling resorts far from attractive for investors.

Russian operators have made their fortunes from providing gambling venues in cities such as Moscow and St Petersburg. How many of their clients would get on a ‘plane to gamble in Siberia or Primorye is debateable, although junkets could be arranged. However, operating profits in the past have depended on location and the local market. Passing trade and suitable demographics will be slow generating revenue in the proposed zones, making a return on capital a long-term investment even if successful.

A report from Bloomberg states that the Russian Industrialists and Entrepreneurs Union is calling for the gambling law to be relaxed. A letter sent by the Union president to the Finance Minister suggests that allowing casinos and slots rooms throughout Russia but limiting them to tourist and hotel areas would reduce gambling venues by about 70%, whilst jobs and tax revenues for the regions would remain.

If the new law is not amended then all casinos and slots operations not in the four designated areas must close before 1 July 2009 – little time to prepare distant gambling meccas, indeed. Because of this the Russian gaming firms have already moved into the international markets and continue to seek opportunities where the climate for both gaming and weather is warmer. (E-03.12.08)

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