With all the chaos going on around Russia, there is at least a twist in the news coming from the region. According to Putin and certain experts, the Crimean and Sochi gambling sectors have fantastic potential to produce up to $750 million annually for the regional financial plan.
All in all, Russia’s ambition is to increase the local economies with gambling legalization, since the casinos will draw investors to the region and produce a certain amount of new employment for the locals. The agreement was signed at the end of July 2014.
As far as Sochi gambling goes, the use of the 2014 Winter Olympics was the brainchild from Sberbank’s chief, German Gref, Russia’s biggest lender. In addition, Sochi will have a stadium for the 2018 World Cup. This is great for the new gambling sector, as revenue from wagering bets will add revenue and a certain dynamic to the area for visitors arriving for the games.
Experts believe that introducing gambling to the Crimean district is a good move. In addition, this is a means for Russia to strengthen their grip on Crimea, as much of the world community is still not accepting of their occupation of the Ukrainian quarter. Nonetheless, the 2014 Olympic Games certainly brought an abundance of attention to the area. Outside of the war like zone, the buildup of the region specifically for the games left Putin with a beautiful province to play with, and legalizing gambling was the answer. If it takes off like gambling does in most areas of the world, the country will have plenty of gambling revenue to help develop the region.
The casinos will only be legitimate in certain parts of the Sochi region. The work of the local legislation is to assign their specific casino zones in the Crimea. Investors in Sochi as of now, have already made objections concerning the loss of finances in the resorts and the Vneshekonombank Development Bank, which invested in the structuring with multi-billion dollar loans, has requested that the Russian government bail out a few of the borrowers.
The legalization of gambling in the freshly appropriated Crimea area, a neck of land that was once home to the Russian Navy Black Sea Fleet, is a shift that many political parties were not happy with. The communist party was especially against it and voted against the bill, as the province is a place that many see as one with military splendor. In their view, it should not be dishonored with a group of eager gamblers rushing to casinos to wager their hard-earned cash and swigging Russian vodka!
“The gambling business will encourage nothing but thievery and decadence, such behavior cannot be validated,” uttered one Senior Communist MP during the parliamentary debate that took place earlier in July 2014. He went on to iterate that present gambling zones, those positioned in the Baltic Enclave of Kaliningrad, the Primorye Territory, and the Altai Territory, are not prosperous, and the region would be best suited to increasing agriculture by farming peaches and bolstering the region’s current vineyards. According to him, the Crimeans will be more than pleased to return to their homeland. Putin feels differently. In no uncertain terms, his view is that it would be reprehensible, period. Due to his present zeal for the planned gambling ventures and the achievement of additional gambling zones such as the Azov City Zone in the Krasnodar District in Southern Russia, fuel has been added to the fire.
At least Putin has Crimea officials in his corner. Seeing that the intended gambling zones will be a solution to much needed new economic development. Deputy Governor Rustam Temirgaliyev announced in a statement to the RBK Daily a few months ago, “The gambling zone is important and should become the drive for the Crimean economy. Our plans are ambitious, and we are depending on our gambling zone to become a serious competitor to Las Vegas, Monaco, and Macau.”
Writers of the law anticipate success with the creation of the new gambling zone. The attraction of new investors is vital for the province; thereby, creating a bevy of new jobs and will hopefully top off the region’s budget. With a renovated region stemming from the Winter Olympic 2014 games all ready to go, it may be a great start to a newer and more vibrant area, it’s all in the cards, so to speak!