There is more illegal activity in the world of gambling. This time it is in Moscow Russia where problems are happening. Recently, the city cracked down on illegal slot machine gaming. There is no lack of illegal gambling activity in the country. They have had problems thus far with writing a proper code for legal gaming. One thing that thieves know though is that gambling is lucrative. They are well aware of how much is available due to the activity and how many Russian residents are eager to get in on the newest and best games to enjoy. There are many illegal gambling rings in the market and these are just the ones that officials are targeting. They are hoping to continue to uncover them and push for changes. The President of the country is acknowledging the illegal activity growth in Russia and as a result shoring up more rules for thieves. He is stating that anyone seen or caught operating illegal slot machines is going to face jail time, and not just a fine or probation. They are hoping that this will deter people from being difficult and trying to make a few extra dollars from the illegal activities.

The president of Russia Dmitry Medvedev is warning Mayor Sergei Sobvanin that he needs to find ways to monitor and stop the illegal activities going on in his city. Sobvanin is the mayor of a city that recently was targeted for a sting operation wanting to uncover an illegal slot machine gaming operation. In the end when police swarmed the location, they ended up recovering over three-thousand dollars in American money, along with the illegal machines. They also arrested the owners and operators of the location. If they are convicted of the crimes and charges against them they could see up to five years in prison. This is meant to be a sign to other illegal operations that they are going to be dealt with harshly if they are uncovered. This could do one of two things: either thieves will think twice and pull out of the dangerous market, or they will work to fool police forces even that much harder.

The interesting thing in Russia is that slot machines are taking hold just like it is everywhere else. Throughout the world gambling is taking a new light. A few decades ago gambling was thought of as a pastime for mobsters and celebrities. Las Vegas was lined with high-end machines that only the rich could afford. Over the years, things have changed. Now, everyone can gamble. There are games from penny-slots to high-roller tables. Regardless of which one you are, you will find a gambling game for you. That includes Russians. 

At one time Russia was thought of as a totally different world due to its communist rule. Now, that that era is over, the country is opening up to enjoy many of the things other countries have for years. Slots gambling is one of them.  A few years ago Russia went through its first transition. It shut down all gaming and slot machines a while back and began confining gambling to its four Las Vegas style styled casinos. Pubs and business owners who had slots decried the change, due to the loss of revenue they were now relying on. Fortunately the change was not permanent.

Over time, slots have made their way into society in Russia. The problem though has now come in the mix with corrupt politicians. There have been various politicians indicted regarding problems with gambling and taking kickbacks. The four main casinos are now the only ones allowed to run slots. This is a bold move and still leaves the door open for illegal slots gambling. Many places have had to have police forces come in and close down their operations. The biggest issue with slot machines is their popularity. Bar owners, criminals, and pub managers know how popular the games are and how much revenue they can potentially bring into their business. The most difficult thing to manage from a policing point of view, is an illegal pastime that is lucrative. Many businesses are suffering as a result of the recession and they see gambling and slot machines as their only sustainable ancilliary activity. The government is working to expand their police force, hoping to get a handle of control over the slot machine issue.

Gambling and slots are popular pastimes throughout the world. Countries in Europe are proving that because of how quickly slot machines are catching on.  The world is suffering still from the global recession that wreaked havoc on most economies and countries worldwide are still trying to think of ways to manage out of the aftermath.  Many countries are looking to legalize and regulate gambling as a means of funding their economies and overcoming hefty deficits. Almost every US state is working with current legislation to help bolster coffers. 

Russia is just like most countries in that it is exploring what it can do in terms of bringing slot machines in and using the revenue for building infrastructures.  Surprisingly slots have taken off quite nicely in the country. Because of that the government is trying to bring legislation what will allow gambling and slot machines to flourish, without limiting the negative affects slots may have on neighboring communities. The country recently reviewed two bills—both were at the lower house, waiting approval. They sought to place strict restrictions and limitations on the gambling industry. Only one has gained support of the gambling industry.

The first bill had lawmakers hesitant to approve. The Russian parliament rejected the first bill to usher in President Vladimir Putin’s bill.  Putin’s bill differs from older legislation in how it handles restrictions placed on gambling and slot machines. Some of the restrictions are:

·         Slot machine parlors must have at least 15 game tables and 45 slot machines

·         Casinos have to maintain assets of 600 million rubles

·         Casinos must own at least 800 square meters for operations

·         One casino/slot parlor can be built per 200,000 people

It’s restrictions like these that are hoping to minimize any adverse affect slots parlors may have on the country, and still allow money to flow into the economy. It will be difficult to say whether or not the initiative will be successful, but one thing that legislators know is that Russians love to gamble and they love slot machines. The government is working hard to capitalize on the country’s pastime and bring much-needed funds into the country.

It has been about six months since there was an online ban of slots games in Russia. But has the country stopped gaming as a result? A new study is showing that not only are online slots players still playing, but they are playing in bigger numbers than they were prior to the ban.  The study of underground gambling is showing that about one third of Moscow’s casinos are opening “lottery parlors” that sell lotto tickets and the number of internet cafes that are outlets for online slots has tripled since the start of the summer. The ban, to say the least, has not been effective in stopping citizens from playing online slots games.

Deputy Mayor of Moscow, Sergei Baidakov stated, “We are seriously concerned about the rise of surrogate technologies. They are the byproduct of imperfect legislation.” On July 1^st the world of online gambling in Russia was seriously threatened.  The capital restricted remote “special zones like Serbia and Altai regions from participating in any form of gambling, including slots, poker and table gaming. The move was forwarded by Vladimir Putin who referred to gambling as the “alcoholization” of the country of Russia. Because of the introduced new laws, the Moscow-leg of the European Poker Tour held by PokerStars, had to immediately be rescheduled to Kiev in the Ukraine.

In 2008, the gambling industry provided 400,000 jobs and turned over somewhere in the region of $3.6 million. Since the outlawing of gambling, the unemployed rate has risen considerably due to gambling and casino staff needing sustenance throughout the difficult period. Although slots are thought to be negative in effect on society, their ban is now creating the new problem of unemployment and poverty. Many people are relying on the government to provide their much-needed everyday expenses.

Although legislators in Russia believe slots and gambling, in general, to be detrimental, without some contingency plan for the workers who were employed in the industry, there is another disaster looming. People are quickly falling into hardship throughout the regions. It’s estimated that they could move into illegal activities to supplement their financial needs. The country must revisit its ban and think of a new plan to provide for its people.

Russian president Vladimir Putin signed a law last month that is causing hundred’s of the country’s casinos to shut down.  Moscow and St. Petersburg have been most affected by the change in laws due to the fact that there were over 30 major casinos in the cities. There also were over 500 smaller gambling operations. All were affected by the change in laws and over 430,000 people lost their jobs as a result of the mass closings.

The law signed by Putin ruled that casinos and card rooms needed to shut down immediately. There are only four allowed locations for their operations and they are in remote locations: Kalinigrad, the Caucasus, The Pacific coast and Western Siberia.  Each location is difficult to get to and many citizens are voicing their disapproval.  In addition, they are threatening to move their gambling needs out of the country altogether.

This is the crux of the issue for many legislators.  If they don’t legalize and regulate gambling themselves, there are other countries that will. Online gamblers will find them and funds will be transferred out of the country. That’s the problem with many US states.  Millions of dollars of US money are being channeled to offshore casinos due to the lack of legal options within the country.  Legislators are exploring the issue and trying to find ways to keep the huge gambling revenues in the country.  Tax laws are being written and the UIGEA is being challenged almost on a daily basis in efforts to overcome the situation.

Russia has chosen to close down gambling in metropolitan areas and move it to remote locations. The problem is that most of these remote areas are lagging way behind schedule in technology and development. Legal analysts have already warned that the country will not be able to open the gaming zones in less than four years time. As a result, it is predicted that the Russian economy will lose up to $1 billion in annual tax revenues as casino operators move elsewhere.

In addition to the job losses and huge financial implications brought on by the new law, Russia’s gaming industry was dealt another blow last month because the Ministry of Youth, Sport and Tourism passed an order stripping poker of its “sports” status.  The move is quickly becoming a problem for the country because gamblers will gamble. That’s the reality. If they can’t do it on their own soil, they’ll find other places to do it.