Russian lower house studying amendment to gambling zone law

A few weeks ago, Krasnodar Governor Alexander Tkachyov sent a letter to President Dmitry Medvedev, proposing the Azov City gambling zone status be removed and instead transferred to the nearby seaside resort of Anapa.

According to news agency RIA Novosti, the suggestion touched off a serious effort that could end in such a move. Anapa, which already has some hotels and is a popular destination for a younger Russian crowd, would be further developed into a family-friendly resort, with casinos.

Azov City is the only one of four designated gambling zones to actually have casinos in operation. All four zones are characterized by an almost complete lack of infrastructure and remoteness from population centers.

RIA Novosti quoted State Duma Deputy Gleb Khor as saying, “Since the law came into effect it has become increasingly clear that no one wants to go to these zones. But Anapa has a modern airport, beaches and tourists.”

Khor has introduced an amendment to the gambling law that would remove the Rostov region from the list of approved gambling zones. The amendment also proposes suspending the ban on gambling for 10 years from the date it was introduced. The Duma Economic Policy Committee has approved the amendment.

Krasnodar Deputy Governor Alexei Agafonov proposed that the new zone, to be built near the existing tourist region, be a “family-type” area.

Gaming operators who met recently to discuss the proposal were said to be in favor of the move. Royal Time Group, which currently operates a casino in the Azov City region, was among those willing to relocate.

“Investors have unanimously supported the idea of doing business on the Black Sea coast of the Krasnodar territory,” Royal Time Group said in a press release.

Agafonov said that, should the proposal go through, none of the companies that have already invested in the region will suffer financial loss.

Tatiana Igumentseva, a spokeswoman for Royal Time Group, said, “Compensation for money that has been laid out by investors is already a confirmed fact.”

At the same time, Royal Time Group still believes the Azov City zone can be properly developed as well.

“Azov City has doubtless potential to be a world-class resort, including developed infrastructure, available transport, engineering communications, a modern airport, extensive beaches and significant tourist streams,” the group said in its statement. The company also emphasized that it wants its Oracle casino at Azov City to remain in operation.

But some developers are upset, saying they have already wasted time and money investing in the region.

“We’re in shock, and we don’t understand,” Alexander Odintsov, director of Odis group, told RIA Novosti. The firm has already rented a 1.5 hectare site in Azov City and had plans to invest 12 billion rubles, about $307 million. “There have been rumors, but they’ve said nothing officially, although we are in continual dialogue with the authorities.”

Some in the government of the Rostov region, which shares the Azov City gambling zone with Krasnodar, also are none too thrilled with the potential change. They are prepared to fight such a decision.

“The Rostov regional authorities will do all they can not to allow the amendment to be approved,” said Vladimir Bertenyev, economic development minister of Rostov.

By Staff