Game over for Russian Casinos

4 August 2010

The first Russian casino was opened almost 2 decades ago. Since then, the gambling industry in Russia has flourished and grown at a very rapid pace, attracting more and more clients. In time, Russia has managed to make a prestigious name in the casino industry and sometimes it even surpassed Las Vegas and the United States. However, it’s not all that rosy as it looks like and it seems that many Russian casinos were in big troubles because of lack of money or frauds. For this reason, in 2009, the Russian government decided to ban gambling across the country.

Still, this entire situation didn’t terrify all casino owners. It just managed to make them more determined to continue with their businesses, only that this time, their casinos were forced to operate underground. The ban was made in June 2009 and from that day all slot - machine halls and casinos are outlawed. Therefore, nowadays the Russian Federation features no gambling, or no legal gambling at least. There are only 4 remote zones in the entire country that still allow gambling activities.

This unjust ban on all Russian casinos has made both company owners and clients search for various alternatives. No one was happy with this unfair situation, so they had to do something. Most casino owners began claiming that no one can actually close the casinos. They said that the casinos and the gambling industry will always function regardless of the consequences. So, the only viable solution was to go underground. Still, casino owners continued their resentment and declared that the legislation against casinos makes no sense and that it actually means nothing. In fact, it promotes exactly what it tries to ban: corruption and frauds.

Customers say that if you have enough money, you can pay an official to turn a blind eye. At the same time, casino managers claim that the industry will be relocated. So, even if big casinos are currently closed, slot - machine parlors converted into lottery halls and poker clubs and have attracted hundreds of clients. These 2 types of gambling, poker and lottery, are still legal in Russia.

In addition, casino owners have another profitable and legal way to continue with their gambling businesses. Thus, numerous big casinos that were closed as s result of the ban were transported in the online area. Going online was probably the best solution for most gambling industries. Controlling the online space is rather difficult, despite all regulations and jurisdictions out there. This sector has an unclear and vague legislation. Therefore, even if online gambling will be prohibited, there are dozens of back - stairs that will help companies find new solutions and run completely legal. That’s why many casino owners declared that the ban was actually extremely beneficial and helpful for them. Not only is running an online business easier, but it also brings about more profits.

In order to open an online gambling business, a company owner must obtain a license from one of the numerous gambling jurisdictions out there. The company must be offshore in places like Malta or Costa Rica. From these locations, it can offer online gambling services all over the world. It’s simpler, cheaper and more profitable that running a casino mastodon. The gaming server is situated in the country that offers the license. As a result, all money transactions take place in that specific location. Also, people don’t have to worry because the places that offer these licenses have no laws against casinos and gambling. They will finally be free to run their business as they wish.

Therefore, anyone can see that the ban on Russian casinos has only managed to promote online gambling and make it more powerful and successful. At the same time, the ban has forced numerous casino owners to commit fraud and go underground. Basically, nothing has changed. People still visit the casinos, whether they’re online or not, and play and casino managers still grow rich because of this. Thus, the question is why haven’t things changed since 2009?

Russian citizens are extremely eager to explore the gambling industry in its new forms and options. As an example, over the last 3 years, the use of online casinos and lottery machines has drastically increased. It seems that in this game between the gambling business and the Moscow governing authorities, the authorities are the ones who lose. They have chosen the wrong victim. Nowadays, there are numerous illegal gambling halls that operate throughout the Russian territory. The only difference is that they have new signboards like Internet Cafe or Lottery Club. So, even if they run a gambling business, these managers pay no taxes to the budget of the country. This type of fraud was promoted by the ban.

Another example would be that Moscow featured no lottery clubs until 2009. Then, out of a sudden, the metropolis has seen the opening of more than 70 lottery clubs in just 4 months. Just imagine what happened in 10 months or 20 months. In addition, computer clubs began attracting more and more people with their brand new strategies and games. Until 2009, computer clubs were completely forgotten and this can only show how powerful the ban was and how unpredictable its effects were.
Sergei Baidakov, a Moscow deputy mayor, has recently declared that the continuous growth of alternative technologies concerns Moscow authorities. He added that the only cause for this byproduct is the imperfect legislation. Casino managers will never give up running their gambling businesses. Hence, they called the online environment as the best alternative to an offline environment. The online gambling industry is gaining more and more popularity and pace, and new Russian gamblers are expected to visit the online casinos in search of ultimate gambling experiences. So, if you are a casino owner or want to become one, this is the perfect time to settle on your niche and start attracting visitors and profits. Nothing can be compared with an online gaming site. The owner is safe, the gaming is legal, and there will be no ban involved even if the owner is Russian.

4 August 2010

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