Russia to Close Azov-City Gaming Zone by End of 2018

The Russian government has intended to shut down the Azov-City gambling zone (Krasnador Region) for the past two years. However, they’ve been slow to do so based on protests from the zone’s casino operators. But Prime Minister Dmitry Medvedev isn’t waiting any longer, as he ordered Russia’s oldest gambling zone to be closed by December […]

The Russian government has intended to shut down the Azov-City gambling zone (Krasnador Region) for the past two years. However, they’ve been slow to do so based on protests from the zone’s casino operators.

But Prime Minister Dmitry Medvedev isn’t waiting any longer, as he ordered Russia’s oldest gambling zone to be closed by December 31, 2018.

Why Is Russia Shutting Down the Azov-City Gambling Zone?

Russian came up with a plan in 2009 that restricted gaming to four regions (a.k.a. zones) within the country. Krasnador was one of these regions. They’ve since seen three casinos open, including Nirvana, Shambala, and Oracul Casino.

President Vladimir Putin eventually weighed in on the matter and felt that Sochi, near the Chinese border, would be a better gambling host for the Krasnador Region. Going further, he and the government announced that Azov-City would need to close their gambling operations.

Sochi has since launched casino gambling and become more successful than Azov-City. This was the final blow in the latter’s case for remaining a legal gaming destination.

Azov-City Casinos Won’t be Compensated

To add insult to injury, the Russian government won’t be compensating Azov-City casino owners for damages after the ruling.

The area’s three casinos have only been open for a decade. But they’re already be forced to close after pouring large amounts of money into their properties.

An estimated $90 billion has collectively gone into making the gambling establishments what they are today. It’s fairly certain that each operator will lose a considerable amount of their investments.

The casinos have just two months to wind down operations and lay off their employees.

 

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