Russia’s gambling zones are not working as well as expected, according to a report from Russia’s Audit Chamber released last month.
The report claimed that the isolated locations have hindered the success of the gambling zones and claims that state officials have not given the project their full support. The auditors concluded that public funds have been squandered in creating the legal gambling zones.
Though the government has spent RUB1.4bn ($44.7m) over the past three years to develop the so-called "local Las Vegas" in remote areas, it has received less than RUB100m in tax revenues from the projects.
Only one of the zones – Azov City near the Black Sea – has managed to open two functioning casinos, the auditors claimed, and there are virtually no fully-fledged arcades.
The Gaming Business Association vice president Vladimir Ilyushin said the situation with the gambling zones is regrettable, but recalled that the association was not consulted when the bill on the gaming zones was adopted, despite protests from some of its members.
"Today, I can't name a single member of our association that would want to invest in those zones," Ilyushin said. "One can only regret that things have turned out the way they did. The sector has been muscled out, but the government is taking the losses."
