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RUSSIAN GOVERNMENT FORCES CASINOS TO SHUT DOWN? WHY?

[+] serious ballot by Socrates
created Tue Jan 30, 07

"Russian casinos ordered out of town
By Richard Galpin
BBC News, Russia

The Russian parliament has passed a law that will force all casinos to close down over the next two years

A rapid growth in gambling has prompted Russia to ban all casinos and gaming halls from its major towns and cities.
From Tolstoy to Dostoevsky, Russia's long love-affair with gambling is well documented in the country's greatest works of literature.

So it should not come as a great surprise that it is once again boom-time for the gambling industry here, after being banned for most of the last century by the communists.

Some parts of Moscow now bear more resemblance to Las Vegas than the heart of a nation which once provided the most powerful alternative to Western capitalism.

The entrance to the Jazz Town casino in the city centre is typical of many: a full-frontal assault on the senses.

Huge, fizzing neon lights illuminate a top-range Mercedes as it spins round on a small podium. The aim is to entice yet more people to throw caution to the wind and put serious money down for the chance of winning a serious prize.

The casino is all you would expect: dark, quiet and crammed with card-tables, roulette wheels and hi-tech fruit machines; and above - mirrored ceilings.

The gamblers are mostly older men still wearing their work suits but with ties pulled low. And the air is thick with cigar smoke and tension.

Cutting a swathe through the heavy atmosphere, greeting staff and friends with a regal kiss and smile, is the big boss.

Cut-throat world

He owns a string of casinos and fruit machine arcades which he says were recently valued at more than £500m ($984m).

It is a gambling empire which he has built from scratch over the past two decades, right through the period of Russia's wildest post-communist days.

Quite how he has survived this cut-throat world is a mystery, especially as he is not even Russian, he is British.

Pulling hard on a cigarette, Michael Boettcher tells me how he left London in the late 1980s, having lost all his money in the property crash. Now he is the proud employer of 6,000 people.

Many moons ago, he says, when he first starting working in a casino in the west, he earned £12,000 ($23,600) a year. Now, he whispers, he makes that every couple of hours.

He estimates the Russian gambling industry as a whole pulls in as much as £4bn ($7.8bn) a year.

As we wander through the casino together, he takes time out from much kissing and greeting to emphasise the apparent altruism behind his enterprise.

Redistribution of wealth

Those who want to gamble will have to invest a lot of time, effort and money to reach one of the new Las Vegas-style gambling zones

In the modern ultra-capitalist Russia, he has seen oligarchs blow a million in his casinos over a couple of days. He says it is a chance for him to redistribute the nation's wealth which is currently concentrated in so few hands.

He claims the oligarchs' bad luck means bigger bonuses for his staff. I am touched.

But now another reality of present-day Russia is about to bite back.

The benevolent Mr Boettcher looks set to become a victim of the ever-lurking uncertainty that makes doing business in Russia so risky. Spurred on by the Kremlin, the Russian parliament has passed a law which will force all casinos and fruit-machine arcades to close down over the next two years.

Instead gambling is to be confined within four special zones in different parts of the country, all outside the cities. The government is very deliberately aiming to separate the population from the casinos.

Those who want to gamble will have to invest a lot of time, effort and money to reach one of the new Las Vegas-style gambling zones.

Mr Boettcher is able of course to apply for a new licence to operate in those zones. But he thinks it may be better to just pack up, leave Russia and find somewhere more welcoming to start all over again.

He has now got his eye on India.

Growing addiction problem

The Russian government says there are very good reasons for imposing such tough new regulations. It seems the exponential growth in casinos and arcades has been matched by a similar growth in the number of gambling addicts across Russia.

Reliable figures are difficult to come by and do vary significantly. But one man who has seen the problem at first hand is Father Anatoly Berestov, an Orthodox priest who runs an addiction clinic in a 16th-Century church hall in Moscow.

He uses a mixture of cajoling and therapy to help those who can no longer control their urge to drink alcohol, take drugs or gamble. He is convinced the number of gambling addicts has shot up in recent years.

Many are businessmen with families who lose everything.

"I've seen many suicides," he told me.

But he is also particularly worried about the spread of this addiction into the villages where, he says, the elderly are now throwing away their pensions."

(Source: BBC)

- Do you believe that the Russian government is shutting down all casinos (except for four isolated areas) because it is concerned about the Russian people's well-being?

Yes, the Russian government did this because it is concerned about its people's well-being

No, Russia's government did it because it is interested in its own power

Move to Michigan...plenty of casinos there...

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Submitted by : Socrates
Submitted on : Jan 30,2007 8:41:55 am
ballot title:

Russian government forces casinos to shut down? Why?

ballot number:111743

COMMENTS

Voted : No, Russia's government did it because it is interested in its own power
The Russian government seems to act like successful thriving businesses are a great threat to its own influence. But it is not unusual for socialists to fear such a thing- even though it brings in a lot of business, investment, and A LOT OF employment.

by Socrates on Tue Jan 30, 07 8:45am [+]

That's interesting, because around here it's the pro-business conservatives who are against gambling. They argue that the social costs are too high, and that the economic benefit is mostly to the casino operators and the mafia.

For the record, I'm against legalized gambling, too. On this one, I agree wholeheartedly with the ultra-conservatives and the Evangelicals.

by cranky on Tue Jan 30, 07 11:48am [+]

Voted : No, Russia's government did it because it is interested in its own power
And because they weren't getting their cut off the top.

by Truthseeker013 on Tue Jan 30, 07 4:53pm [+]

cranky- Yes, I have noticed that Americans left, right and center are very conservative when it comes to gambling. Quite puzzling.

But anyway, back to Russia- illegalising gambling will only push it underground. The business tycoons have expressed they are all leaving and many Russians will lose their jobs. But the Russian Mafia I am sure is thrilled- they will now have a complete monopoly on gambling in Russia- they will be even more powerful.

by Socrates on Wed Jan 31, 07 12:10am [+]