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Online Gambling Flourishes in Russia despite Ban

Online Gambling Flourishes in Russia despite BanOctober 7 - On Monday this week Russian government officials expressed concerns regarding the increase of 'surrogate' gambling technologies, such as instant lottery machines and online gambling websites, despite a blanket ban on gambling that was passed a three months ago in the country.

Said Moscow deputy mayor, Sergei Baidakov, at a news conference, 'We are very concerned about the rise of surrogate technologies, as they are the byproduct of imperfect legislation. However, city and federal authorities will soon close the legal loopholes that allow online gambling and the unrestricted sale of lotto tickets.'

He also reported that since the ban, approximately
one third of Moscow's 525 casinos and slot game halls had started selling instant lottery tickets, while the number of internet cafes in the capital that actively provide Russians with access to online gambling sites, had risen by over 300 percent.

As of July 1, 2009, the gambling ban came into effect in Russia, where it was confined to special zones in 'far-flung' areas. However, judging by the deputy mayor's comments, the ban has thus far proved fruitless, and in fact appears to have increased gambling activity, particularly in the Capital.

Plans for the Russian crackdown on gambling originated in 2006, when then president,
Vladimir Putin, pledged to root out the activity he viewed as another form of 'alcoholism'. (This from an ex-KGB agent, who allegedly used his questionable connections to become an 'instant' oil and gas billionaire and buy his way into power).

After the fall of the Soviet Union in 1991,
casinos sprang up in Russia like mushrooms, and slot machines spread beyond gaming halls to shops and even shopping malls. In fact, by 2008 the Russian gambling industry was reported to be worth over $3.6 billion a year, and provided employment to over 400,000 Russians.

But now
the bright lights of casinos and slots halls are dwindling as Moscow seems to have cleaned up it act. Those land gambling venues - once famous for attracting a questionable class of people - have made way for trendy shops and restaurants, and even fitness clubs, that any Westerner would be proud to frequent.


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