Russian Casinos to Balkans?

The law to shut gambling halls, which was passed in late 2006 with the support of then president Vladimir Putin, limits casinos and gambling halls to four exempt zones distant from Moscow: the Baltic enclave of Kaliningrad, the Primorsky region on the Pacific near the North Korean border, the Altai region in Siberia, and two towns in the Krasnodar region near Sochi, host of the 2014 Winter Olympics.

The zones were chosen to redirect tourism and investment to underdeveloped regions and moving the gambling there would require investments of $23 billion. None have yet been built.

Putin proposed the law after the interior ministry in 2006 linked several gambling operations in the country to a Georgian organized crime organization. A large portion of the gaming industry in Russia is under the control of Georgians, many of whom are thought to have mafia ties.

Widespread Gambling Addiction

Russian authorities have presented the move as a crackdown on organized crime and widespread gambling addiction.  

Industry bodies estimate between 300,000 – 350,000 jobs could be lost from the closings, in addition to $1 billion in annual tax revenue.

More than 500 gambling halls and casinos are set to close in Moscow alone.

While some owners have expressed interest in moving business to neighboring countries, several others have announced they will set up in Southeast Europe.

Oleg Boyko, co­owner of Ritzio entertainment, one of the two largest casino companies in Russia, said Ritzio planned to move its operations to Serbia and Croatia, among other countries.

And Anatoliy Kuznecov, president of the Russian company Korston, told Vecernji Novosti he has purchased the 300 room Queen Montenegro Hotel in the coastal town of Budva and plans to open a casino there.

The short flight from Moscow and visa-free travel to countries such as Serbia, Croatia and Montenegro are seen as an attractive means of luring high-spending Russian tourists, the paper reports.

--Michael Mehen