Closure of the Russian gambling zone in Azov City
We recently announced the upcoming opening of a gaming area near the Russian city Vladivostok.
The Russian government has also just ordered the closure of Azov City, one of the four regions where they legalised gambling in the country.
A letter issued by Alexey Sheyan, the Minister of Strategic Development of Krasnodar Krai, visited businesses in the area and explained to them that the zone was going to be closed by April 1, 2015.
The first casinos in Russia
The Ministry of Finance confirmed that it was currently preparing the documentation necessary for the liquidation of the casinos in Azov City.
Before the gaming zone closes, the government will issue a resolution to cancel the licenses of investors of gambling activities.
It could result in the loss of hundreds of millions of dollars to develop the first casinos in Russia, since games were banned in the country.
Three gaming establishments
Azov City is located in the extreme western part of Russia in the territory of Rostov and Krasnodar.
It has become a special gaming area after Vladimir Putin banned land-based casinos on the 1st of July 2009.
The first facility was opened only seven months later by the Royal Time company based in the Russian republic of Tatarstan, and it was called Oracle.
The following two casinos, called Shambala and Nirvana were opened at the beginning of 2010 and end of 2013, respectively.
Insufficient compensation
A new law was introduced in 2011 to change the boundaries of the legal zone, because of infrastructure and connectivity problems, but the casinos remained operational and began the reconstruction of gambling activity in Russia.
The Ministry confirmed that it will do everything possible to compensate for losses.
Additionally, they said that at least 10 billion rubles ($145 million) will be assigned to the Krasnodar region for gaming expenses.
The total investment in Azov City, however, exceeds the amount of the compensation.
This decision also raises some doubts about the new gaming areas that are opening in Vladivostok, as well as Sochi and Crimea; especially as new investment projects in Azov City in 2015 were topped with a budget of $2 billion.
The region was set to become a top vacation resort offering 16 gambling complexes.
