Russian Casino Ban Will Cause Illegal Gambling, Opponents Say
When Wednesday arrives and the Russian law closing all casinos goes into effect, gambling will not stop, say critics of the plan. Instead, legal and licensed casinos will be replaced by illegal, unregulated gambling venues.
July 1st marks the implementation of a Russian policy to close all gambling locations across the country, only allowing those that relocate to four special gaming zones to operate in the future. But the gambling zones are in distant and desolate locations, with poor infrastructure and far from the Moscow crowds that made gaming a thriving industry.
But the St. Petersburg Times says casinos are busy disguising themselves as lottery centers, determined to keep operating after the deadline. The law is vaguely written, allowing gambling operators to use loopholes to continue their business while simply changing the names.
Government officials try to put the best face possible on the situation. They claim the loss of taxes as casinos either move or go underground is not significant, and that the majority of operators believe the move is a good idea.
“The federal authorities have convinced both the regions and businesses that the project is highly attractive and is bound to be a real success,” the economic minister of one of the gaming zone regions told Interfax.
“We are talking about one percent of the city budget,” said Lidiya Mamon, an official at St. Petersburg city hall.
But industry insiders say they pay over $1 billion in annual taxes. If gambling becomes a black market activity, the gaming continues but the revenue disappears.
