There has been surprisingly little concrete news on Azov-City since local authorities in the Krasnodar region of Russia announced that land auctions would be held on 1 July. The zone, located on the border of the Krasnodar and Rostov regions along the Azov Sea, was created last year as one of four zones where the country's gambling industry will have to move after a ban comes into effect for other parts of Russia on July 1, 2009. Also little has been said of the other three gambling zones.

Twenty plots of land were to be offered to prospective investors on long-term leases with the right to buy after construction projects are completed. The Krasnodar government pledged around US$21 million towards the provision of utilities to the area. It has now been reported by constructionrussia.com that the land tender took place on 29 July and sixteen sites were sold, although the full details are not known. However, the Eelex website states that there were fourteen bidders for five land lots with a total area of 26 hectares offered to prospective Russian and foreign investors on July 1.

What is known is the interest shown by Casinos Austria International in acquiring land to develop in Azov-City. The company is believed to have obtained one plot of approximately 15,000 sq m and will sign an investment contract with local authorities. An 18 hectare site was not allocated and will be offered again at a later date together with new lots. With construction on Azov-City due to start by 1 November 2008 and to be completed by 30 June 2009, this timetable is already looking unrealistic.

However, with casinos outside the gambling zones becoming illegal on 1 July 2009, it may be that marquees and prefabs will spring up to house the gaming tables and slot machines until permanent facilities are finished. Whether either Russians or foreign tourists will avail themselves of the opportunity to gamble in these designated zones is something that remains to be seen. (E-08.21.08)

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