Russia: Azov City gambling zone will be relocated

During three years of existence, Azov City has gained neither enough clients nor investors who could provide developed infrastructure. On top of that, Krasnodar region is more attractive in terms of tourist traffic and has more potential for development in terms of gambling although Rostov region is mainly agricultural district and is not very popular among tourists.

Lyubov Loginova comments: “This decision is logical, on one hand. Better late than never. But there are more questions than solutions. For example, what about compensations for those who invested in Rostov part of the zone? What will be the new development plan for Azov City?

Azov City seems to be the only gambling zone that is opened and is currently operating in Russia. The second casino has just been launched in October 2010 and has not reached break-even point. However, Loginova adds that the perspective of total relocation of Azov City to Anapa region seems to be economically valuable since pay-off period for resort area is estimated at 5-7 years although for the current location it counts for 20-25 years.

When asked about the new initiative of the Russian government that bans all raffles (except governmental) which use different technical devices, she says that, on one hand, this decision has a logical explanation. She pointed that, after the gambling ban, most of halls has been converted into Internet clubs or lottery halls. “They did not simply change their signboards but modernized gambling equipment in accordance with current legislation requirements”.

“The requirements to lottery equipment proposed by government opened in numerous ways to violate the law and preserve gambling business as it is, – says Lyubov Loginova – But one should not forget that there a many companies who organized raffles no gambling in pure accordance with the law. And from the 1st of January 2011, Do they have to disappear? The initiative to ban the interior of lottery terminal seems to be rather strange. If you want to organize gambling – you will either inside lottery terminal or in computer or in trash box – form does not matter. What matters is what should companies do after 01/01/2011 – those who really conducted raffles, not gambling?” she concludes.