Investors will be paid off
Russian President Vladimir Putin has signed a bill ordering the Azov-City gaming zone, first licensed for operations in 2010, to close down by January 1, 2019.
According to Onlinepoker.net, Azov-City was the country’s first official gaming zone in 2010, but cannot remain open beyond the deadline because it would compete with operations in Sochi, where gaming was approved last year. The website reports that the government is trying to recoup part of its $51 billion investment in the 2014 Sochi Winter Olympics.
Meanwhile, operators who invested into Azov-City will be compensated for their losses, reports say. The investors include the Royal Time Group and Shambhala; the latter said it would seek at least 10 billion rubles (US$145 million) to cover “all costs and loss of profit.”
By law, reported Russian news agency RIA Novosti, only one gaming zone is permitted on the territory of a constituent entity of the Russian Federation.
In related news, Putin spoke against an expansion of the gaming industry outside the proscribed areas. He said the existing industry will be “put at a disadvantage” if gaming machines of any kind are permitted elsewhere in the country. “On all sides, it’s better not do this, and we won’t do this,” said Putin.
In 2007, Pricewaterhouse Coopers estimated that Russia’s gaming business was worth around $4.6 billion. In 2009, gaming was outlawed in all but the special zones, reportedly because authorities were concerned about the social problems associated with gambling.
