Let losers weep
The federal law “On state regulation of activities involved in gambling organization and arrangement” has been long awaited by both gambling operators and local officials. Even prior to its introduction, authorities of a number of Russian regions (in particular, Tchelyabinsk, Tumen and Perm regions, the republic of Bashkiria) passed their own legislations regulating gaming business in 2005 and 2006.
Both officials and operators agreed on the necessity to get rid of temporary halls where slot machines were located: they did discredit gaming business as a whole. However, the federal law, as we know, advances far beyond it…
In Ekaterinburg, now there are 290 gambling facilities (including 17 casinos) officially registered. According to Oleg Neipheld, the head of the relevant sector in Consumer Service Arrangement Committee of Ekaterinburg administration, no more than 130 of them comply with the requirements of the new law. “One can hardly expect the shadow segment of this business to extend,” believes Oleg Neipheld. “Local businessmen will most likely start cooperation with Moscow chains.”
Despite the coming reduction of the number of gambling facilities, some large “players” of gaming business in the Urals are quite optimistic: they assume that the federal law might be revised. “I don’t think it improbable that the law will be changed, and that they will cancel setting up zones,” thinks Alexey Galaguzov, President of Ural Association of Gaming Business Development. “Only a few ask the price of land plots and real estate in the corresponding regions.”
The vital capacity of gaming zones is really questionable. Firstly, only the largest market participants will be able to take part in setting up “las vegases” in the middle of nowhere: construction and making the infrastructure will take enormous resources. Secondly, gamblers will most probably prefer Europe to Altay region: there are higher-quality casinos, more sightseeing and better infrastructure. “But if gaming zones are set up anyway, this business in the Urals will just die away,” supposes Alexey Galaguzov.
It will cause employment reduction (at present in Ekaterinburg only about 2.5 thousand people are employed in the sphere of gaming business) and dramatic decrease in tax collections. In 2006, Sverdlovsk region budget received about 720 mln rubles from gambling facilities.
“Expert-Ural” information