The State Duma allowed building a casino in Sochi even within the Olympic venues

On Friday, the State Duma accepted causing sensation amendments to act governing gambling activities in the second and third and final reading. Now in Russia one can open gambling facilities not only in Crimea, but also in Sochi, straight in the territory of Olympic facilities.  

Story with inclusion of Sochi as a gambling zone into the bill was similar to special operation. Members of the State Duma Committee on Economic Policy did everything quietly and at the last gasp, just before the general voting day, and unanimously approved amendments to Federal Law 244. The sense of these amendments is as follows. There will be five gambling zones in the country: in the Altai, Krasnodar and Primorsky regions, in the Kaliningrad region, and a completely new cluster in the Crimea. Today only one zone – in the Krasnodar region – really works, the so-called "Azov-City". And yet, according to data provided by Accounts Chamber of RF, it turned out to be not as profitable as it was expected. During the existence of "Azov-City" about 1.4 billion RUB was invested, and the money has not been fully repaid. 

Another important innovation is that borders of gambling zone in the Krasnodar Territory will be approved not by regional authorities, as in other similar places, but by the federal government. Amendments allowed building casinos in Sochi, straight in the territory of Olympic facilities, but not in all of them, but only in those financed not at the expense of budgetary appropriations or funds of state corporations, but with private funds. It is commonly known that the largest non-state investors who invested billions of rubles in Olympic sports, residential and commercial facilities are companies of Vladimir Potanin and Viktor Vekselberg. However, "MK" correspondent was told in the State Duma that all gambling zones, including one in Sochi (provided that in the future the government takes such decision) shall be operating in strict accordance to current legislation that prohibits opening gambling establishments except bookmaker’s offices and totalizers within settlements.

By the way, not so long ago Sochi public Council applied to the government with request to make gambling zone in the main media center that was built for the 2014 Olympics. This is tens of thousands of square meters of indoor area and parking area, located away from residential zone. However, this proposal is unlikely to be agreed as a media center was built with funds of the state corporation "Olimpstroy". And yet it is quite real to open casinos and offer slots in the mountains, for example, in "Rose Khutor". Especially taking into account the fact that the infrastructure is totally ready: reconstructed airport, roads, first-class hotels, restaurants, entertainment venues.

It is interesting that at the beginning of the year President Vladimir Putin unfavorably spoke about it. Allegedly there is a lot of crime and generally audience of a very peculiar kind is attracted to gambling zones, and it would violate the concept of Sochi as the center of "family-friendly rest for people with average, below average or slightly above-average income".

However, poor economic situation, annexation of Crimea, urgent need for additional funds, and (what is also possible) desire to help private investors in Sochi to pay back their money – all these factors may have completely changed the position of the president and the government. In the spring of 2014, Vladimir Putin introduced a bill to the State Duma where only Crimea was mentioned. On June 10th deputies passed the law in the first reading.

The next day, Putin instructed the government and the governor of the Krasnodar Territory to explore the issue of gambling zone in the territory of Sochi. And finally, the decision was quickly realized. 

Leonid Berres