Russia’s recent crackdown on gambling has led to an increase in online casino activity in the country. On July 1st, Russia put new legislation into effect that basically shutdown the casino industry in the nation. Under the new laws, casinos and slot machines are now restricted to four remote areas of the country. The restricted areas are the Altai region in Siberia, the Western exclave of Kaliningrad, the Primorsky region on the Pacific Coast and in the proximity of the southern cities of Krasnodar and Rostov. There are no casinos in these areas and potential casino investors are hesitant to get involved because of the remote locations.
Crackdown has been in the works
The desire to curb gambling in Russia began in earnest in 2006. Then-President Vladamir Putin felt that the industry was contributing to the “alcoholization” of the nation.
The casino industry took off in Russia after the collapse of the Soviet regime in 1991. Slot machines became prevalent in gambling halls, shops and malls. Now, the glittering casinos that were built in Moscow in the 1990′s are being phased out in favor of restaurants, fitness clubs and shops. A former slot machine hall in central Moscow has now been transformed into a currency-exchange bureau, a fast food restaurant, and a cellular store. Some vendors from nearby shops were happy to see the changes.“It’s a lot quieter here now, after all those weird gamblers disappeared,” said Alexandra Tarpishcheva, a saleswoman at a nearby restaurant.
While the casino industry did provide 400,000 jobs in the country last year, the government has felt that the negatives of gambling have outweighed any positives in recent years.
Citizens exploring other options
The ban hasn’t stopped Russian citizens from exploring some other gambling options. The use of lottery machines and online casinos have dramatically increased over the past three months. In recent months, “lottery parlors” have been opening up in the country to sell instant lottery tickets. Also, internet cafes offering access to online casino resources have tripled. The government feels that some loopholes in the new laws are being exploited.
“We are seriously concerned about the rise of surrogate technologies,” Moscow deputy mayor Sergei Baidakov said at a news conference earlier this month. “They are the byproduct of imperfect legislation.”
Lawmakers have said that they will attempt to close the legal loopholes in the current legislation. Authorities have been looking to shut down any illegal casino and slot machine operations that are deemed to be in violation of the law. Earlier this month in Moscow, over 30 slot machines were seized by the police. Over the past three months, about 35 underground casinos have been shutdown by authorities.
In the end, the growth and popularity of online gambling will likely win out over the long haul in Russia despite the new restrictions. The United States prohibition of alcohol in the 1920′s has provided a clear example of the problems that can develop when citizens are restricted from engaging in a popular social activity.
