Casinos Shut Up Shop In Russia

Critics of new gambling law point to high levels of unemployment when casinos close.

A new gambling law has come into force in Russia today (July 1st), forcing almost every casino venue in the country to close down.

Under the new regulations, gambling will be confined to four designated zones in far-flung regions of Russia, meaning casinos and slot machine halls in Moscow and other cities are now illegal.

The move has been widely criticised by the nation's casino industry, which claims that 350,000 people will become unemployed as a result.

Moreover, the gambling zones, which are situated in the Primore region in the far east, the Baltic enclave of Kaliningrad, the Altai region of Siberia and the Azov Sea in the south, are thought to be far from completion.

"It's preposterous to think these replacements could be up and running soon," Samuel Binder, deputy executive director at the Russian Association for Gaming Business Development, was quoted as saying by Reuters.

"Even those who have investments for gaming have realised they'd rather take their money elsewhere in the ex-Soviet Union or to Latin America," he added.

Other critics of the new law fear that it will drive gambling venues underground and lead to increased corruption.

There are over 500 gambling venues in Moscow, where the casino industry has grown rapidly since the fall of the USSR in 1991.