Gambling // Current

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All Bets Are Off: Russia and Ukraine Ban Gambling

The neon lights are no longer flashing; the roulette wheels have spun their last turn. Casinos across Russia closed their doors on Wednesday as a sweeping ban on gambling came into effect, less than a week after a similar ban hit neighboring Ukraine. Lawmakers in both countries say the bans were necessary to bring under control spiraling addiction and a notoriously shady business. But critics say the moves will leave hundreds of thousands out of work and force the industry underground. Until June 25, the River Palace was one of the most popular casinos in Kiev, buzzing with customers trying their luck in rooms awash with the sounds of pinging bells and clicking roulette balls. But now the place is deserted, filled only with an eerie silence. The timing couldn't have been worse for Olha Stupak, who was one of the casino's senior supervisors. With a child about to enter university, car loan repayments to meet and rent to pay, she's going to struggle to get by on her savings and unemployment benefit. "I'm looking for work, but it's difficult because of the crisis," she says, looking round at the empty tables. "I know all about roulette, poker and blackjack. But other jobs require different work experience." The ban — which affects not only casinos, but also slot machines and bookmakers — is set to push up unemployment levels in one of the regions already hardest hit by the economic crisis. In Russia, an estimated 400,000 will be out of work and in Ukraine, "overnight, 200,000 workers have been left without a job," says Hryhoriy Trypulsky, vice president of the Ukrainian Association of Gambling Operators. "The legislation has been rushed through without any thought of the consequences."

Russia had been planning its ban for some time, with parliament passing legislation in 2006 which would restrict gambling to four remote areas from July 1 this year. But Ukrainian lawmakers were slower off the mark, and only sprang into action in May after nine people were killed in a fire at a slot machine hall in Dnipropetrovsk in eastern Ukraine. After the fire brought national attention to an industry that was already widely frowned upon, lawmakers pounced. The legislation they passed places a temporary ban on gambling while plans are drawn up to restrict gambling to special zones, most likely in Crimea on Ukraine's southern Black Sea coast.The neon lights are no longer flashing; the roulette wheels have spun their last turn. Casinos across Russia closed their doors on... more