Russia gives green light to Crimea and Sochi gambling zones

The Russian State Duma has approved a bill to establish special gambling zones in Crimea and Sochi in an effort to make the regions more popular for tourists and attract additional investment.

According to Russia’s English-language news channel RT, the exact location of the gambling zones will be determined by the local government.

Russian president Vladimir Putin submitted a draft bill to parliament to designate the seceded Ukrainian peninsula of Crimea as a legal gambling zone.

Analysts forecast that the new gambling zone could add an additional $720 million (€529.6 million) into the Crimean economy.

“The creation of a gambling zone in Crimea will attract additional investment to the region, create jobs and improve the tax base,” First Deputy Chairman of the Duma Committee Anatoly Karpov said.

“[Moreover] an increase in tourism as well as the development of hotel businesses and catering can be expected.”

Investment is expected to be at least $100 million and could reach $1 billion, with many potential investors having already submitted proposals to the authorities

Government officials also supported amendments to the bill to establish a gambling zone in Sochi

The city, which is located in western Russia, served as the host city for the 2014 winter Olympic and Paralympic Games.

In 2009, Russia banned gambling across the country, except for in the designated regions of Krasnodar, Kaliningrad, Altai and Vladivostok. The only operational resort is Azov City in Krasnodar, with work ongoing elsewhere.

The ban came as a result of an anti-vice campaign that included measures to curtail smoking and underage drinking.

Source:http://www.igamingbusiness.com/