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Gambling Industry Faces Eastern Uncertainty

The fortunes of the gambling industry in Russia and Georgia face an uncertain future following separate attempts in the two countries to slow the increased interest in gambling. Legislation requiring producers and traders of gambling equipment to obtain licenses came into effect on 17 July, 2005. The law was widely celebrated by gambling firms who had previously operated illegally in Russia.

However, the government has so far been unable or unwilling to adopt the by-laws necessary to fully implement the new legislation, leaving the industry in a confused state of limbo. Similarly, gambling institutions in Georgia are furious over the government’s decision to increase taxation rates by almost 30 percent. Over 20 gaming establishments in Georgia have been forced to close their doors in light of the new taxation law.

Both laws are commonly seen as governmental attempts to restrict the growth of the gambling industry. Russian casino fans have awoken to the online gambling phenomena and those with access to high speed internet connections participate at a number of international online casino sites.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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