Russia - gambling to be limited to special zones in three years

 
  Author: Levitov, Maria; Yablokova, Oksana
  Source: St. Petersburg Times
  Published: Nov 17, 06
  Full Document:
  MOSCOW — State Duma deputies unanimously gave tentative approval Wednesday to a bill that would tighten the screws on gamblers and ultimately ban gambling except in four special zones from 2009.But the legislation — criticized for clumsy wording and prohibiting activities such as betting on friendly card games in private homes — is widely expected to undergo drastic changes before it passes a second reading, probably later this year.

"There is no doubt the bill will change beyond recognition," said Yevgeny Kovtun, a spokesman for the Gaming Business Association, whose members have been operating in Russia for the past decade.

The bill, submitted by President Vladimir Putin last month, sailed through a first reading Wednesday by a vote of 440-0 and one abstention.

Under the bill, small slot-machine halls and casinos will be closed next July, when a minimum gambling age of 18 and other restrictions come into effect.

Duma deputies stressed the need for national gambling regulations, but said the legislation must clarify how the four gambling zones would be set up.

The current version does not outline how many of the zones would be established inside residential areas. Also, it does not provide a mechanism for creating the zones, which is also key to the legislation’s success, United Russia Deputy Igor Dines said.

Federal authorities would grant five-year licenses for operation inside the zones.

The exact locations of the four zones have not been chosen, but Duma Speaker Boris Gryzlov has said two zones will be in European Russia, one in Siberia and one in the Far East.

The first zone will be created in July, Putin’s representative to the Duma, Alexander Kosopkin, said during his presentation of the bill on Wednesday.

Moscow does not plan to apply for the status of a gambling zone, a Moscow deputy mayor, Iosif Ordzhonikidze said last month. This means that the 537 gaming establishments that are licensed to operate in Moscow would need to close or relocate to a special zone by 2009.

Posted: November 18, 2006

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