Not just Russian Roulette any more

Those of you who rush to see each new film about the adventures of James Bond do not need to be reminded about the special atmosphere of Casino Royale in Montenegro. However, the reality hardly matches up – only a handful of casinos in this part of Europe look like the one in the film

Gergo Racz, Emil Górecki, Mladen Petrov

T      ‘ ); another will be located in Primorsky Krai; athirdcalled Yantarnaya ( –theAmber Room)in Kaliningrad Oblast; and afourth –Azov-City (-) –on theborder of Krasnodar Krai and Rostov Oblast. “The concentration of the‘gambling industry’ within thefour zones will enable astricter control of these facilities than if they were dispersed. The authorities also want tostimulate theeconomy of these four zones,” explains Yulia Nikulicheva, head of thestrategic consulting department at Jones Lang LaSalle.

So far there is little demand for plots of land for investment in thefour zones, even though no gambling establishment can legally exist outside their borders since July 1st. There were 179 gambling companies operating in thecountry in themiddle of June and they ran 560 casinos and outlets where you could try your hand at poker, roulette or play fruit machines. The sector paid over USD 1bln of tax tothegovernment. Theoretically, thecompanies should move their businesses totheassigned zones, however this is not happening yet. Part of thebusiness will probably go underground instead of entering theRussian Las Vegas. The local governments of theregions are trying toattract investors, but so far only afew transactions are in theoffing. The first casinos tobe launched in thespecial zones will have tolive through areal survival period. This is because there is alack of branding, tradition and publicity. “The Russians love gambling, so it is possible that thezones will develop in thefuture. However, Ican’t see much prospect for them at themoment. It will be difficult tocatch up with themost developed American gambling towns. There is alack of incentives from thegovernment in Russia, while thetaxes on gambling are very high. Moreover, developers and investors need money nowadays and theassigned zones require huge investment. The plots of land donot have suitable access roads, electricity, water or sewage systems, and there are no decent airports or hotels in their vicinity. The rich ones who are looking for luxury service will probably not go toAmerica  of Ukraine has also passed acomplete ban on gambling in thecountry. President Viktor Yushchenko did not agree with this solution, but theSupreme Council eventually rejected his veto. Nonetheless, just as in Russia, in order topermit gambling companies tooperate, special zones are tobe designated.

Bulgarians rub their hands in glee

The first casino in Bulgaria, theso-called Bansko casino, was opened in thetown of Varshetz, near Sofia in 1930. It quickly became amagnet for thecapital’s elite, who pleasured themselves in this impressive building. Among thefrequent visitors totheplace was Prince Cyril, brother of theBulgarian tsar Boris III, and after his death, theregent. Nowadays, thebuilding of thebeautiful casino is empty and nothing remains of its former grandeur. The capital’s elite enjoy themselves elsewhere and investors are more interested in projects along thecoast and in thebiggest Bulgarian towns. The seaside resorts are far below thestatus of gambling empires. There are two casinos in Golden Sands and three in Sunny Beach. This, however, could change in afew years thanks totheban in Russia. But Russian investors donot have tolook for alternatives in their own country. After all, they can move totheBalkans. Tour operators assure us that gambling lovers will appreciate thenew location. “Bulgaria is one of themost popular holiday destinations for Russian tourists. For them it is closer than Siberia, where one of thenew gambling towns is tobe created. Also Serbia, Croatia, Turkey and Greece can be taken into consideration,” says one investor, whose Moscow business was shut down
  Montenegro, one of thenew stars of top-shelf tourism, is also attractive for Russian capital. The casino from theKorston Hotel in Moscow is moving toBudva. The owner of thehotel has bought theKvin Montenegro hotel and achartered flight service is tobe launched tothetown in theautumn. Talks with thefirst investors interested in Bulgaria have already started. ABulgarian-Russian investment forum has informed us about two companies that are planning toinvest afew million euros in Bulgaria. The Russians are attracted toBulgaria                , Germany, Asia and theformer Soviet states, with Bulgaria way down thelist.

Hungary