World

Russian Casinos: Game Over July 1, 2009

by sara star | June 30, 2009 at 03:10 am

422 views | 104 Recommendations | 11 comments

Casinos mushroomed in Russia's cities after the 1991 collapse of the Soviet Union and slot machines quickly spread beyond gaming halls to shops and malls. The spread of gambling has provoked distaste among many Russians over the flashy cars parked outside glittering casinos in Russia's capital and the harm that gambling can do to society.

As of July 1, 2009, casinos will be closed in Russia. Some estimates say it will put 400,000 people out of work. The government argues that it is more like 60,000 people. The loss in taxes is expected to be one billion dollars. The industry has been largely unregulated, and now a public outcry has influenced the government to pass a law against it. They do have an option of relocating in four remote areas of Russia. It's in like Las Vegas of Siberia.

Russia will be one of the few countries in Europe without them.

All casinos and slot-machine halls will be outlawed. With the exception of four far-flung special zones, no gambling will be allowed across the Russian Federation.

The damage to the health of people and society would be a far greater figure than the money lost in the budget (from gaming taxes)," Baidakov told Reuters. Russia's gaming industry brings in up to $7 billion a year and pays $1 billion in taxes.

While big-rolling casinos are likely to stay shut, many slot-machine parlours will reinvent themselves as poker clubs or lottery halls – two forms of gambling not banned.

2 See all footage | View Slideshow

Share: email story | add to any | | facebook | stumbleupon

recommend This comment thread is now closed

sara star

at 20:00 on August 21st, 2009

djermano

at 06:57 on June 30th, 2009

I think it is good to close them. What good do they do? The jobs they create are not really jobs. Better to hand me 100 dollars and guess which hand I have it in, than to then have to pay me for winning or losing the bet. Just think if people thought of paying their taxes like they do in throwing their money away in gambling...how much better real services for people would be achieve. Thanks for the story Sara...I had no idea this was happening in Russia

Rev. Jermano

Kevin Collins (not verified)

at 07:45 on June 30th, 2009

And now the Russian Mafia will jump right in to fill the void. Remember that where there is "demand" someone will supply. kevihttp://www.kevinstastyblog.blogspot.com/

AlvarezGalloso

at 08:56 on June 30th, 2009

Great story.

azzayindia

at 09:22 on June 30th, 2009

great story

jazzyzazzy

at 10:25 on June 30th, 2009

Russian roulette is no more it seems.

sara star

at 11:15 on June 30th, 2009

LOL I think that might be still OK, falls under the same rules as poker/lottery...

WisdomMountain

at 10:47 on June 30th, 2009

Very positive development.Looks like the Russians are becoming much wiser.Gambling is a vice that can result in bankruptcy,family break-up,prostitution,etc.It is powered by greed.It dissipates much energy that should be marshalled towards better productive and more profitable purposes.Thanks sara star for the story.Singapore government should learn and stop development of two huge casinos there!

Amy Judd

at 11:16 on June 30th, 2009

Wow, this is some news.

sara star

at 16:09 on July 1st, 2009

...The law marks the end of an era that began in the 1990s, when businessmen and gangsters who acquired fantastic wealth in Russia's post-communist turmoil gambled it away in lavish casinos.

...Putin, who once called gambling addiction "even stronger than addiction to alcohol" .... stopped the industry in its tracks with a law that literally exiles casinos to Siberia.

....The gambling law is expected to have the biggest impact on Moscow, which had 524 casinos and gaming halls before the law took effect, and Saint Petersburg, which had 109.

Maireid Sullivan

at 19:53 on July 4th, 2009

The Russians are trying to reclaim their government, and more power to them! Hopefully, they can unravel the 'takeover' networks that plundered their commons after the 1991 collapse. But, unfortunately, the blue print for neo-classical economics is now firmly in place, so Russia will go the way of the West, in terms of ongoing 18 year Real Estate Boom-Bust Cycles that leave more and more people impoverished in their wake.