The local authorities in the Krasnodar region of Russia have announced that they will hold auctions for land plots in the planned Azov City gambling zone on July 1.
The zone, located on the border of the Krasnodar and Rostov regions along the Azov Sea, was created last year as one of four zones where the country’s gambling industry will have to move after a ban comes into effect for the rest of Russia on July 1, 2009.
The regional authorities will offer Russian and foreign investors 20 land plots in the zone. They will be bidding for long-term leases with the right to buy after construction on them is completed.
Among the companies that have shown an interest in the development is Casinos Austria International. Representatives from CAI met with Rostov Governor Vladimir Chub and "expressed interest in the Azov City project," the Rostov government said in a statement.
The Krasnodar government said in its statement that the region would spend nearly US$21m to provide electricity, gas and water to the facility. However, both
regions are counting heavily on investors to make the necessary outlay.
The zones, which have been promoted as a way to draw tourists and revenues to remote regions, came into question last month when Finance Ministry estimates suggested that they might cost US$31bn.
A government source said that the ministry might seek to amend the law creating the zones if funding could not be provided.
The three other gambling zones are in the Kaliningrad, Primorye and Altai regions.
