Russian government unfavourably comments on “gambling ancillary services advertisement” legislation
The author of the draft approved on May 18th meant that it would deprive unfair gambling operators of the opportunity to use “umbrella services” – advertise casinos under the guise of concerts, hotel facilities, etc.
The effective federal law “On advertising” provides for tough restrictions for gambling advertisement. It may be broadcasted at night only, and published only in advertising or special-purpose mass media. And it is even forbidden to advertise casinos in the Internet or outdoors or otherwise.
The draft proposed by a group of deputies will apply these restrictions to “gambling and/or betting ancillary services advertisement”. They are hotel, catering and entertainment facilities – the list is set forth in the federal law “On state regulation of activities involved in gambling organization and arrangement”.
Commenting on their initiative, the deputy of the State Duma Economic Policy, Entrepreneurship and Tourism Committee Vladimir Medinski indicates that the law requirements may be neglected, not via advertising the very gambling facility but via advertising concerts, restaurants and entertainment centres. “However, as a matter of fact, such advertising aims at attracting potential gamblers and betters”, states the deputy.
The Russian government has commented on the draft unfavourably. “The legislation does not specify clearly enough what exactly gambling ancillary services are. Should the legislation be adopted, it would enable executive powers to abuse their authority, breed a conflicting enforcement practice and weaken public constitutional right and freedom protection guarantees”. The government attorneys’ claims are quite well-grounded. The restriction proposed by Medinski may be applied to advertisement of nearly all travel agencies. For instance, the majority of Saint Petersburg travel agencies (the advertisement of a travel agency chain may be seen on billboards) suggest buying a tour to Grand Casino Royal Hotel, which features the largest gambling facility of the Spanish coast of Costa Brava. The hotel is included in catalogues issued by travel operators, and agencies can not refuse from selling it to the final buyer.
There are casinos and slot machines on board of Silja Line, Viking Line and other ferry companies. Voyages by them (especially the Finland-Sweden route) are also offered by the majority of travel agencies. Advertising their services, they advertise a ferry (a hotel, a tour), and, advertising a hotel, according to Medinski’s idea, they advertise a casino.
The objective of adopting the law is vague. As soon as in seven months casinos and slot halls will be permitted to set up only in the four special zones created within Altay, Primorie and Kaliningrad regions and in Kuban (on the border between Krasnodar and Rostov regions).
There will hardly be a huge problem arising from a central TV channel advertising a concert of a really popular rock group to enjoy which a gambler from Moscow or Saint Petersburg will have to go to Vladivostok. Vladimir Medinski emphasizes that at present a gambling operator can indirectly advertise their activities under the guise of sponsorship advertisement of cultural and entertainment events. However, the draft presented by him does not contain any amendments to Clause 3 of the law regulating the sponsorship advertisement vehicle.
Still the “umbrella advertising” is far not the only problem of evicting gaming business to the “zones”. For example, the law bans activities involved in gambling organization and arrangement via information and telecommunication networks, including the Internet and communication facilities. But this ban will hardly be governing companies beyond Russia. The Russian authorities can attempt to prohibit registration of domains in the RU zone and opening of hosting. But the server may be located anywhere in the world, and the activities of the organization will be governed by the law of its jurisdiction, including any offshore zone (Cyprus, Malta, etc.). Besides, the current legislation does not prohibit the Russians to transfer money to accounts open in foreign banks.
It is hardly possible to ban opening casinos and slot halls on the ships flying the flags of foreign countries which may dock at the port of Saint Petersburg. Their deck is under the jurisdiction of the country the flag of which is flying around the mast, i.e. beyond the Russian authorities’ competence. There is experience of setting up such casinos – a Boeing 747 departing from Tel-Aviv and cruising above the neutral waters for several hours features a gambling hall onboard.
Fontanka.ru