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Cooperation

Gaming Business Association asks everybody concerned with maintaining of civilized gaming business in Russia for cooperation

People in the know: Casinos Need a Place To Live

Casinos occupy a special place in Moscow's entertainment network. Gambling fervor reigns supreme in casinos, where, as many erroneously believe, the lucky ones get fabulously rich. In reality the losers throw their money to the four winds.


Igor Ballo was born on 12 April 1954 in Moscow. He served in the Navy before graduating from a medical school. Ballo has been in the gaming industry since 1988. In 1991 he opened the first casino on the territory of the Soviet Union where stakes were made in rubles. In January 1992 he established the Association of Gaming Business Figures and ever since has been its president. In 1994 through 2000 Ballo took part in the work of a special commission under the Moscow government to control and observe the laws of the gaming industry. In 1993 Ballo opened the Zhar-Ptitsa casino. In 1996 the Beverly Hills casino was built; U.S. actor Chuck Norris co-invested in the project. In the U.S. Norris owns a chain of casinos.


But it is not the chance of a lucky win alone that makes casinos so attractive — over recent years most Moscow casinos have developed into large entertainment establishments where guests can have fun in the company of their friends, have a hearty meal and listen to their favorite variety performers.

Igor Ballo, president of the Association of Gaming Business Figures (ADIB), believes that what is especially important for a casino is its location, the design of the building and its interior, as well as competent management. And his opinion can be trusted. Ballo — a well-known entrepreneur and a variety performer — was one of those who laid the foundations for the development of the casino business in Russia.

-What is new in the Association of Gaming Business Figures (ADIB)? Today many non-profit organizations that unite people from a certain market are in stagnation. What is the situation like at ADIB?

We have decided to restructure the association and accept new members. Under the aegis of the Association of Gaming Business Figures we plan to establish a structure to be entitled the Association of Gaming Business Veterans (ADIBvib). It will unite individuals and companies involved in the gaming industry for at least a decade.

-What are the reasons for establishing a new organization?

You see, the association remains as it is, but certain changes will be introduced, taking into consideration the current situation. Lately, the gaming industry has become chaotic. Every company involved in that line of business and every casino is effectively an offshore zone on the territory of Moscow and Russia.

They do not care for the long-term strategy of business development, pursing only profits. The efforts aimed at lobbying the private interests of casinos and arcades to draft a bill on the gaming business prove that.

While the bill has not yet been adopted and its content can still be influenced each interested company or association seeks to have it written in such a way that it meets their needs. I believe that that is wrong, because the law should take into consideration the interests of all the participants of the market.

As I see it, the gambling industry is a team business. Taking into consideration the current situation, we have moved to unite its veterans by setting up a kind of council of elders, so that the representatives of various associations — there are over 30 of them in Russia — can speak their minds and together take decisions that will suit all the participants of the market.

There is a need to examine the needs of all the interested parties and to work out a common vision on what the industry should be like in several years. We have to answer the question: what will happen to the industry? Do we want to destroy it, close it down or to promote its civilized development? I have every reason to raise the issue, because as a result of the redistribution that began in 2000 the industry has been developing chaotically.

Before 2000 the gaming business was predictable and during the 1990s we could say for sure what would happen to it in the future, while today making forecasts is virtually impossible. Although, frankly speaking, even in the 1990s there were times when tensions were exacerbated, when many bureaucrats tried to play up to foreigners and merely betrayed the gaming industry that had taken so much effort to establish. They wanted to please those who seemed stronger.

I believe that was a short-sighted policy. In those days the gaming community did not allow foreigners to enter our market. Today officialdom's approach has not changed much but we hope that with veterans and gaming business professionals involved in our work new opportunities and instruments will emerge, in particular, for brining all the market participants together to tackle our problems. It is time to forget about personal ambitions.

-A casino is an entertainment establishment, aimed primarily at well-to-do clients. What does a casino's commercial success depend on? How important is the property or building a casino occupies?

When someone puts his heart and soul into a business it shows. That is why the commercial success of an establishment depends 90 per cent on the owner and his team. If the owner is a professional, it shows both in the interior of the building and in the atmosphere of the casino, filled with a special spirit that makes its guests immediately realize that no one wants to rob them of their money, but to surround them with attention, to create a cozy, relaxing atmosphere.

The standards a property occupied by a casino must meet should be high. Most Moscow casinos were opened in the premises of famous hotels, restaurants, movie theaters, clubs, etc. Yet, regardless of location a casino should leave a nice, lasting impression.

-The gaming business in Russia is still associated largely with casinos functioning in the West, where casino buildings embody grandeur and magnificent architecture. They are built to please millions of tourists who each year flood Las-Vegas, Atlantic City, Monte-Carlo and other cities across the globe. To what extent do the buildings of Moscow's casinos conform to world standards?

Unlike foreign countries where most casinos occupy buildings designed and developed especially for that purpose, in Moscow 80 per cent of the 56 casinos operating in the capital rent premises that were never meant for such activities. And only a handful of gaming establishments occupy buildings purchased from previous owners and reconstructed in the spirit of a casino.

Approximately half of the existing casinos meet international requirements. First and foremost, among those I would name Metropol, National Golden Palace, Kristall, Arbat, Metelitsa, Korona, Mirazh, Evropa, Shangri La and a few others.

For example, the Arbat casino, which is part of a cultural and entertainment center bearing the same name, occupies premises in the Arbat restaurant at 21, Novy Arbat, opened in 1967. That property has been renovated a number of times and has considerably increased in size. Today it looks like the hold of a gigantic liner.

The Metelitsa entertainment complex includes two casinos, a night club, a sports entertainment club and bookmaker's Sportland, the Slots Club arcade, three restaurants and several bars. I think that Russian casinos should not seek to fully imitate those in the West. We have our own path of development, and besides, our financial potential is different.

-You have said that most properties occupied by casinos were not initially adapted for the gaming business. Are there any rules when rebuilding these properties so that they can house casinos?

This is entirely up to the owner or investor to decide. He can come up with any design; can even suggest building another Ostankino [TV] Tower. But there are standards the interior of a property should meet. The compulsory requirements are as follows: a casino must have a cashier's office, relaxation rooms for the casino staff, an enormous room if the establishment wants to attract a large number of guests, or several less spacious rooms for gambling tables if the casino is VIP-oriented, as well as a bar and a restaurant. The guests' safety is a very important requirement that gambling establishments must meet, that is why every casino has specially equipped facilities for security staff.

-And what can you say about the entrance to a gaming establishment? On the one hand, it must be convenient, while also preventing several people from entering the casino at once. After all, it cannot be ruled out that some of the visitors may have evil motives…

Making a casino entrance like that of a bank is too much! There are large establishments operating several gambling halls, and that is why it is impossible to imagine that it would ever occur to anyone to rob them. Such a person must be insane, or there would have to be a whole battalion of burglars.

A casino usually has a great many rooms, most of which are equipped with phones and alarm buttons connected to a central control console. At the entrance metal detectors are installed to prevent people from bringing weapons inside.

When someone arrives at the premises they enter a zone controlled by numerous surveillance cameras. To succeed a robber would have to seize all the facilities within minutes, which is impossible.

Besides, the cashier's offices are equipped like those in the banks. Internal regulations do not allow casino employees to deviate from their set routines, which prevents them from loitering around certain areas. Entering an expensive VIP-oriented casino situated in a prestigious hotel unimpeded is even more complicated.

However, I do not approve of how the security is organized at certain casinos, where each guest is probed by five guards with huge biceps. It is wrong. It makes you feel like you have entered a military agency or a gym instead of a casino. Security guards must remain unseen unless their presence is really necessary. Installing sophisticated barriers at the entrance makes no sense.

-How can one tell an expensive casino from a cheaper one?

By its interior. And this does not necessarily mean expensive furniture — the interior can be cheap but fashionable, say, in the style of modernism, and you will have a cozy casino. But most importantly, a casino must be popular and fashionable. Few of the 56 Moscow casinos are like that.

Expensive casinos in Las-Vegas, Monte-Carlo or Atlantic City often have large chandeliers hanging above the entrance. The interiors are exquisitely designed, with even the smallest details considered. In Russia you can tell an expensive casino by its entrance and fantastic signs. Some of them are situated on the premises of 5-star hotels.

For instance, the Ambassador casino, famous for its exquisite interior, is situated at the Baltschug-Kempinski Hotel where most foreign stars stay during their trips to Russia. The Metropol casino club, situated at the hotel of the same name, is developing the rich traditions of the best English and Russian gambling houses.

Pleasant conditions for gambling and recreation are created in casinos with a classic interior and a friendly atmosphere. Upon entering an expensive casino guests do not have to make an effort to open a huge steel door — instead glass doors open automatically, and well-dressed employees welcome them inside.

The rooms are furnished with great taste and the walls are adorned with pictures. Moscow casinos like Golden Palace, Kristall, and Metropol have implemented good interior design solutions. Those casinos are constantly introducing new ideas. When the Golden Palace casino first opened it was just another casino with an average interior, but its team has done everything in their power to improve its quality.

Today Golden Palace is one of the best gaming establishments in Moscow. I know the owners of that casino and I approve of how they work. On the whole, I like many teams working in the industry; it is just that some of them have ideas and imagination, but cannot afford to implement them. And if people who have their own ideas, imagination, and those with means come together, the quality of gaming establishments will improve.

-Is it hard to rent property for a casino?

Renting space is not a problem as the availability is high.

-Are there places where opening a casino is not allowed?

Casinos cannot occupy property in residential houses, close to medical institutions, schools, or children's institutions.

-You said that in Moscow there are no facilities built especially for a casino. Why aren't casinos being built? And is a detached building really necessary for a casino to prosper?

Building a real casino requires huge funds and time, but there are no investors. As to your second question, I would like note that the building really does play an important role. Ideally, it should be a building erected especially for the purpose of opening a gambling business on its premises. But I think in the course of time Russian casinos will come to realize that.

When someone plans to open a casino on rented premises that are not adapted for the purpose, they always have to take into considerations the space restrictions, the layout of rooms and the bearing walls, ceiling height, etc. For instance, the bosses want to build a water feature inside a casino, but then along comes the designer and says that it is impossible because of the low ceilings or something or other. As a result, they have to adjust their plans to suit the property. But when a building is being developed especially for a casino, all the necessary parameters are taken into consideration.

-But are there any plans to develop a casino building in Moscow?

There are. And it was our team that came up with the idea. We have been working on the project for several years and have been actively looking for investors. We have already clinched several preliminary agreements with foreign investors willing to put up money in the development of a new casino.

-Will it be financed by foreigners?

Yes. Russian companies are still reluctant to invest, which is why we have to focus on the foreign companies who contacted us.

-What is the volume of investment required for the project?

The better part of $50 million.

-What will the new casino be like?

We want to build the best casino in Moscow and if we succeed, in terms of design and size of investment it will be a casino of the 21st century, completely different from all the others that exist in Russia and Europe. The design has already been prepared and it is different from what the public probably expects. It will be an extraordinary cultural and entertainment center, with an original architectural design, and it will be illuminated so brightly it will be seen from all over Moscow.

-Is it necessary for a casino to occupy a high-rise building?

It makes no difference how many stories the building has. It can be a high-rise like in Las-Vegas or a small building as in Monte-Carlo, but the casino itself should occupy the first (ground) floor, as is the case across the globe.

-Is the address of the new casino already known?

I cannot answer that question yet.

-Is it necessary for a casino to be situated in downtown Moscow?

Not really. The location is very important for a casino — 50 per cent of its success depends on it. In Moscow there are many examples of successful casinos that are situated outside the historic center, on the city's main thoroughfares. For instance, Novy Arbat [Street] is a good, profitable location.

-Which address in Moscow is the best location for building a casino?

I know such a place but I cannot name it because it is a secret I would rather not reveal it to our competitors. I can say only that as yet no casinos have been built there.

-Is it in the city center?

No. A casino does not necessarily need to be built in the center, mainly because there is not enough space in the city center for the necessary infrastructure. A must for a casino is a spacious adjacent territory for arranging a parking lot for at least 100 cars. There must be a convenient driveway, and not from just one, but from several streets, and preferably from several large city thoroughfares.

-In the late 1990s the Moscow mayor's office planned to move all the gambling outlets to the Nagatino Island. What do you think of that idea?

Our association as well as the others opposed the plan, first of all, because that site is very inconvenient — it is surrounded by industrial estates, plants and warehouses. Lately the city officials came up with the idea of driving gambling businesses to the outer limits of the capital, but its implementation has been impeded by numerous legal barriers.

For instance, in order to vacate the properties for casinos other companies will have to move out. And as many of them own their properties it will be necessary to build new ones for them. All that is very complicated and I do not think that those plans will be implemented any time soon.

-What is better for a casino — one large hall with dozens of gambling tables or several smaller rooms?

Small rooms in casinos are a thing of the past. Such casinos were built in the early 1990s when there was an acute shortage of space, and, most importantly, of gamblers. Today there are no such problems, and the people involved in the gaming industry are, for the most part, men of means, and they can afford to develop a casino the way it should be. But this does not mean a casino cannot be small, exclusive, VIP-oriented.

-What should a Russian casino be like?

A Russian casino should be notable for its hospitality, friendly atmosphere, coziness, and grand scale. It goes without saying that high-skilled management is a must for any respectable casino. What is most important for our guests is the passion of gambling and interaction — that is what makes us different from foreigners.

Russians rank among the best gamblers in the world — when Russians, Chinese or Koreans gamble, people from other countries never seem to compare. A Russian gambler can stake all he has in a game. Europeans and Americans are much more cautious. They count their money as meticulously as they drink vodka — in little sips. Russians can drink an entire glass in one gulp. They are natural-born gamblers. They can win everything and lose it all within minutes. Such is the nature of our people. And that is why I love them.

http://www.vedomosti.ru

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