Russia Struggles With Problem Gambling
Like many other countries, Russia is dealing with the questions surrounding casino proliferation. Because of concerns relating to problem gambling, Prime Minister Vladimir Putin and President Dmitry Medvedev are planning to limit gambling to four zones created in outlying areas, effective by mid-2009.
However, casino operators are not enthralled by the plan. Citing a multitude of problems that would arise by the exile of gaming venues, the Industrialists and Entrepreneurs Union, which represents the casino industry, suggested zoning certain hotels and designated casinos as the only legal gambling areas.
It is a sign of how differently things work in Russia that there is an organization called the Industrialists and Entrepreneurs Union.
The zones Putin wishes to create would be in areas devoid of infrastructure, and would take years to develop, opponents say. Furthermore, illegal gaming houses, already numerous in Russia, would expand exponentially in number. Other gambling operators with footholds established outside the country assert they would just leave Russia for friendlier territory if the law were changed.
Russia is estimated to have over 3 million problem gamblers. By removing access, Putin supporters theorize that number would drop by 2/3, down to 1 million. Also, money laudering and mob activity would be rendered easier to monitor and control.
Russia currently has over 360,000 slot machines, the third most in the world after the U.S. and Japan. Gambling revenue in 2006 was over $7.8 billion.
Perhaps a compromise plan might be best. Control of licensing seems to be of utmost importance, with heavy enforcement against illegal operations. By limiting the number of existing casinos to a small number per city, the designing of remote zones may not be necessary to address Russian ills. Exile was the old political solution for everything unpleasant in Russian history, but it might not work with gambling.
