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Posted: 2007/09/07 by: Glenn Haussman.
Russia is on the precipice of saying nyet to casino gambling in most of the country with a bill that will outlaw the pastime in 2009.
This week Russia’s lower Parliament house passed a bill that will shutter most casinos and slot machine parlors in the country.

The bill was resoundingly approved as 428 of the State Duma's 450 deputies gave their approval to the measure. It is widely expected by those on the scene that the bill will be immediately passed by the upper house of Parliament and then signed into law by President Vladmir Putin. Putin has supported this act, submitting the original draft of the proposal back in October.

The bill also outlaws Internet-based gambling, and sets a minimum gambling age of 18 years.
Under the new law, gaming outlets or slot machines may not be located in apartment buildings, street kiosks, childcare centers, educational or healthcare institutions, railway terminals, airports, seaports, public transport, passenger lounges and waiting areas, sports facilities, state and government agencies, or religious organizations.
Once approved, the four legal gaming zones would be located in the Baltic exclave of Kaliningrad, the Primorsky region on the Pacific coast, the Siberian region of Altai and in the southern Krasnodar/Rostov area. Gambling outside of these zones after June 30, 2009 would be illegal.

"These are repressive measures - essentially they amount to a ban," Yevgeny Kovtun, vice president of the Association of Gambling Businesses told the AP. The organization is a lobbying organization that has the support of dozens of casino gaming companies.


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If passed, no new gambling sites will be allowed to open, and then in summer 2007 only those casinos with more than $23 million in assets would be allowed to remain open for the next two years. This measure is expected to immediately close many of the casinos that have opened since the Soviet Union disbanded in the early 1990s.
According to Vladimir Medinsky, deputy chairman of the parliament committee that drafted the legislation, the business needs to be shut down. “This is a business based on vice. It brings no good. It hasn't been banned altogether, [but] it is a natural vice and should therefore be controlled."

Though casinos will still exist in the aforementioned areas, it is not expected any of the regions will turn into a Las Vegas style gambling town. The locations are extremely remote from major population centers and it’s not widely expected people will want to board a plane simply to go to a casino.

"In the U.S. people know about Las Vegas from childhood, but in Russia gambling tourism doesn't exist," Kovtun said. "Before, a person would pop into a casino or slot-machine hall between the metro and his house. Now ... the gaming companies will have to entice him to the Pacific coast."
These remote areas also have no infrastructure to support casino gaming resorts either.  Reports are the government would be willing to invest in roads and other infrastructure, but no private gaming companies have yet expressed interested in investing in a new facility that is not a sure bet.

According to the Russian News and Information Agency Novosti, Moscow has already removed 70% of gaming facilities from the city since the beginning of 2006.

The chairman of the Moscow administration's commission on gambling Iosif Ordzhonikidze said that since the beginning of this year 1,954 gaming facilities were removed from the Russian capital, which amounts to 70.5% of the total, while 241 gambling facilities will close shortly, leaving just 546 casinos in Moscow, a city with more than 11 million people.

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