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Law could be revised in 2008
Published:  01 October, 2006

There are plenty of reasons to think this could be the case, anyway. The main factor that makes such an assumption possible is that Russian deputies were not able to submit any draft law that meets the interests of any party, or even the interests of the State. The state authorities intend to modify the gaming business model profoundly.

The authorities are primarily interested in the business structure represented predominantly by the “high rollers” of the market. It simplifies the work of fiscal organizations and at the same time makes representatives of the gaming industry more loyal towards the state. It means that the government would be able to involve them in social and other important issues of the state. Also, it could relieve social strain and issues raised by smaller gaming venues. But this is just a theory. In practice, deputies proposed only a few variants which were discussed in September.

Most of the Duma representatives are inclined to resolve the problem by quota arrangements. The project imposes limitation on the venues depending on the city or district dwellers (one venue for no more than 200 thousand residents). If this variant passed, no more than 50 gaming venues would stay in Moscow (with about 10 million official population), irrespective of whether it is a gaming hall or casino.

Another popular idea in Duma is to close all the halls in state and municipal buildings. At first, this may be considered as the most liberal and reasonable path for both authorities and operators, but according to our investigation some 82.3% of all the venues are situated within the territory of municipal and state property. If this law passed, the operators as well as municipals would meet with great losses.

The proposal to make special gaming reservations outside of cities and other populated areas has not been forgotten. It is unnecessary to comment, but it should be noted that the project would be considered perfectly seriously and it has enough supporters.

Further we should say some words about the so called Scandinavian project of interconnection between state and industry. Some analysts consider the idea the worst, because it demands to modify the whole legislation in the country. Igor Artemiev, head of Federal Antimonopoly Agency of Russia commented on the problem: “Our Constitution proclaims that all the property forms should be equal. The state property is essential and at the same time it must not prevail. The most dangerous factor for the competition and economical efficiency is when the regulators try to dictate the rules of the game in the market.”

Nothing doing, but he is right. The idea to create a “coalescent lusus” with two heads, one head of the regulators and another one of the gamers, is not for Russia, though the alcoholic drinks industry could be headed that way soon.

Certainly no one expected such a move by the agency leader. In fact, everything is developing in a way which will culminate in the elimination of small businesses. But home policy of the state seems inclined to shut its eyes to what is happening, though this is not exclusive to Russia. Such a measures were accepted in various countries and in connection with different business activities. The Federal Antimonopoly Agency of Russia also doesn’t preclude that after reformations of the gaming industry, a price collusion is very possible.

Anyway it is most clear that the gaming law would not be accepted during this autumn session, especially in the light of the incident with Moscow government and Supreme Court.

The regional authorities will try to hasten the Duma, as the absence of any federal law means people are at risk of breaking regional gaming laws. And the legislators have already promised to maximize all the efforts to prevent a difficult situation for the justifiers, at least before 2008.


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Poll

Will the plans for Russia's 'remote' gaming areas go ahead as the State Duma has described?

  • Yes, almost certainly. It's a great idea.
  • Maybe, with a few revisions it could work.
  • Don't be absurd, it's a crazy plan.
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