Exclusive Report

Gambling zones in Russia: Today and Tomorrow – Part 1

From July 1, 2009 operating of casinos was prohibited throughout Russia, except for four designated gambling zones - in Primorye and Altai regions, Kaliningrad region and the border of the Krasnodar territory and Rostov region. Government adopted the law in December 2006. But by July 1, 2009, none of the zones was ready to receive the players. Even today, three of the four zones exist only on paper.

Lyubov Loginova, Chairman of the Board of Directors of the Alsart Group, offers a series of articles with an insight on the current situation and perspectives of gambling zones in Russia:
Azov-City
Today the gambling zone Azov-City, which is located on the border of the Krasnodar territory and Rostov region, operates the first legal casino, Oracle. The casino was built by the company Royal Time from Kazan City, which has invested 300 million rubles (US$10 million) for this project, with almost 100 million rubles of which was spent on the acquisition of slot machines and other equipment.

The Administration of Krasnodar territory has laid the electricity, gas and water lines, sewerage to the gambling zone and brought to order roads leading to Azov-City from its budgetary funds, where some half billion rubles was spent for this purpose. Howerver, the Government does not plan to fund Azov-City anymore and operators will have to rely on off-budget investment.

Krasnodar developer Park City has started construction of the second casino in Azov-City, and the opening of this gambling establishment is scheduled for August 1, 2010. Also, northern Europe casino operator Olympus has recently announced its intention to build a casino in Azov-City. The area of fourth gambling establishment is 1500 thousand square meters, and will be built by American technology "Sprung".

Two other companies: Business Consult and Northern Caucasus Region are going to build their casinos in the Azox City gambling zone. Business Consult plans to begin construction in summer 2010. The terms of the construction of the casino by Northern Caucasus Region company is still unknown.

Loginova said: “From the viewpoint of equipment’s supply for today, in Azov City, the most promising of four gambling zones in Russia, there are already tangible results. Today we participate in this project as a supplier of imported gambling equipment. But, in time, it may be that we will come into the position of operating company”. (E-05.21.10)

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