Gambling in Russia has been relegated to four very distant areas of the nation where there is no activity as yet. Re-licensing in Russia is a very difficult and involves a convoluted process that deters the average bookmaker or casino operator from moving forward.

Moscow Deputy Mayor Sergei Baidakov says “525 casinos and slot machine parlours in Moscow were once busy venues. Today about a third of those operations are selling instant lottery tickets.”

In Moscow alone the number of Internet cafes providing access to online gambling has tripled since July. Russia's gambling industry was generating $3.6 billion and employed about 400,000 people. Baidakov said, "We are seriously concerned about the rise of surrogate technologies," adding, "They are the by-products of faulty lawmaking. The budget has suffered little from the ban on gambling, with tax revenues down only 0.5 percent. It's nothing compared to the benefits to the health of the nation."

Viktor Vasilyev, deputy Moscow police head said, “authorities are continuing to search out illicit casinos and slot machine halls, with police seizing 33 slot machines recently and shutting down 35 underground casinos since the legislation passed in July.

“We expect that city and federal authorities will close the legal loopholes that allow online gambling and the unrestricted sale of lottery tickets. Some residents have voiced their delight that the slot machine halls and casinos have been replaced by restaurants, fitness clubs and deli shops. Shop owners and those who work in the restructured areas are finding things a lot quieter.

Posted on: November 11, 2009

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