Counters on a roulette table in a casino in Nizhny Novgorod, Russia
Photo: Nikolay Cyiganov
| Other Photos |
 |
|
 |
President's Legislation Concerning Gambling Introduced in State Duma
On Friday legislation signed by President Putin that would severely curtail gambling establishments in Russia was introduced in the State Duma. The law, entitled "On Government Regulation of Activity in the Organization and Implementation of Games of Chance (Gambling)," appears to be a compilation of proposals put forth in March of this year by a group of Duma deputies; however, the current legislation employs a much stricter definition of designated "gambling zones" where gambling businesses can set up shop.
The legislation is expected to come into force in three periods, beginning in January of 2007. In the first six-month period, from January to June 2007, the law stipulates the closure of almost all small gambling businesses throughout the country. Only companies will assets worth more than 600 million rubles will be legally allowed to operate. In addition, as of June 2007 all internet gambling in Russia will be outlawed, along with any casinos that have fewer than ten game tables and/or that are smaller than 800 cubic meters and any gambling establishments that have fewer than 50 gambling machines and/or that are smaller than 100 cubic meters.
The second stage, which will begin in June 2007 and run until December 31, 2008, is being promised as a paradise for those establishments that survive the initial purges. In this period, licenses will be automatically granted to any company that meets the law's requirements, and the regulatory atmosphere will be much like it is now. However, Michael Botcher, the president of Storm International, believes that around 50% of Russia's casinos and 60% of its gambling machine operators will not make it to that stage.
In the final stage, starting from January 1, 2009, all gambling businesses in the entire country will be required to be concentrated in four gambling zones.
Many in the gambling business believe that the law will be a death blow to the industry. Boris Belotserkovsky, president of "Unikum," believes that the "gambling zones are a chimera." He also does not believe in the promised "gambling paradise": "After June 2006, 300,000 gambling machines will become illegal, and legal businesses will not take their place."
Even Valery Medinsky, a Duma deputy in favor of the law, admits that implementing the new regulations in the short time period allotted will be problematic: "I can't imagine how we can build Las Vegas in six months," he said.
Dmitry Butrin
All the Article in Russian as of Oct. 09, 2006
|
|
|
