Gaming Business Association (ADIB) – Setting Up Gaming Mega-Resorts and Their Successful Operation Are an Uphill Economic Task
With the passage of the Federal Law on the State Regulation of Activity to Organize Gaming and on Introducing Changes to Some Legislative Acts of the Russian Federation, the gambling business is known to be concentrated, from July 1, 2009, only in the four zones set to be created on the border between the Rostov region and Krasnodar Territory, in Primorsky Territory, the Kaliningrad region and Altai Territory.
Projects, which are unparalleled in the world, should be launched in these gaming reservations over a short term. Gaming zones now under creation will operate for no less than ten years since their establishment and the Russian Finance Ministry will oversee their activity.
Creation of gaming zones implies huge cash turnovers, with the latter spurring regional authorities to begin offering their territories for the gaming zone location. Analysts observe, however, that the choice of territory for Russia’s gaming zones is of the advertising rather than economic nature.
In the opinion of Igor Ballo, President of the Gaming Business Association (ADIB), setting up gaming mega-resorts and, most importantly, their eventual successful operation are an uphill political, public and economic task. It can be accomplished in Russia as well. However, a great many issues need to be tackled in the mid-term perspective to translate this plan into life.
Major market players and governors of the Kaliningrad and Rostove regions, Primorsky and Altai Territories will discuss gaming zones budgeting and construction issues at a special session titled Promising Real Estate Formats during the Russian Real Estate Market 2007 – 1st Dealmakers Forum that will take place in Le Meridian Moscow Country Club from November 30 to December 1, 2007.
This discussion aims at providing to the governors of the regions as guarantors that a capital-intensive project of this kind will be implemented as part of efforts to handle the tasks set a place to present concepts of gaming zones in their regions.
During the discussion session participants will focus on possible risks and ways to minimize them in carrying through this kind of project, infrastructure potential and the necessary capacities to build a gaming zone, the required volumes of investment and the guarantees extended by the government in entering the project.
The forum is called upon to take an insight into the potential of the Russian real estate market amid the declared plans for the next few years: to hold the Olympic Games in Sochi (2014), the Asia-Pacific Economic Cooperation (APEC) summit in Vladivostok (2012), the Shanghai Cooperation Organization (SCO) summit in Yekaterinburg (2009). The forum will run open discussions of the largest urban projects and development of real estate close to airports. A special focus of the forum will be speeches by foreign investors who will present their plans and projects of capital investments in the Russian market. The results of the year will be summed up within the roundtable format, with players mapping out their development strategies.
Igor Ballo, President of the Gaming Business Association (ADIB):
Dear forum participants!
I am glad to welcome you at this event on behalf of the veteran Gaming Business Association in Russia. Our organization has pursued its activity on the Russian Federation territory on a par with entities engaged in the other types of entrepreneurial activity for over seventeen years. However, with the passage of the Federal Law on the State Regulation of Activity to Organize Gaming and on Introducing Changes to Some Legislative Acts of the Russian Federation, the gambling business will be accessible, from July 1, 2009, only at the four regions set up for this purpose. Projects, which are unparalleled in the world, should be launched in gaming reservations located in the Kaliningrad region, Primorsky and Alta Territories and on the border between the Rostov region and Krasnodar Territory over a short term. The forum will possibly help to answer key questions: whether these projects will be implemented and within what terms? The opinion of our Association is well-known: setting up gaming mega-resorts and their eventual successful operation is an uphill political, public and economic task. It can be accomplished in Russia as well. However, a lot of issues need to be tackled to handle it.