Are they clearing the field for the Russian gaming business in Belarus?
The Ministry of Sports and Tourism has prepared a draft of the President`s decree “On some measures on enhancing the procedure of operations in the gaming industry”. According to the experts` evaluations, only the large business will be, if ever, able to comply with the requirements included in the document.
Smaller private companies of the gaming industry are mainly dealing with slot machines, bookmaking and totalizators. For instance, there just several large companies among the 300 business entities operating in the market of slot machines. The remaining are small businesses having, in average, no more than three slot halls, 4-5 people employed in each. The new requirements will force most of them to close down, the experts forecast.
In particular, the small business may be unable to handle the amount of the nominal capital needed for continuing (or starting) operations in this market. Pursuant to the draft decree, owners of slot halls and casinos will have to bring in at least 50 thousand euros. The amount is 20 thousand euros for the rest (bookmaking offices and totalizators). At present the gaming business is registered according to common rules applied for OJSCs, LLCs or ALCs.
However, the gambling operators are concerned not only about the dramatic growth of the nominal capital. According to the draft, the amounts mentioned shall be deposited in a bank account so as to guarantee payouts of winnings.
Above all that, slot owners will also have to replace their equipment with the new one. The draft decree introduces the requirement according to which the average payback of each slot machine shall be no less than 90%. The machines that are being used in Belarus now (produced both locally and abroad) do not support these requirements. This is not stipulated by the current state standard for slot machines either. Now it is planned to change it. The draft decree anticipates that the standard will come into effect as of January 1st, 2010.
The experts do not think it impossible that this situation will be beneficial for Russian slot machine manufacturers and operators. Their equipment meets the requirements the Belarus government is planning to implement. Taking into account the fact that after July 1st, 2009, most Russian casinos and slot halls may be closed (they will be allowed to operate only in certain areas of the RF), Belarus might be chosen as the place for their further location.
the “Belorusskiye Novosti” materials