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MARKET REPORT www.euroslot-online.com
Armenian gambling market
Interview with Lyubov Loginova, Chairman of Alsart Group
What is the situation about gambling December 2002 the activity 49 big gambling venues was stopped and
business legislature in Armenia? they should be moved out of the city. According to mass media moving
The gambling business in Armenia is regulated by the Law “On games gaming business outside the capital and regional centers favored the
with money prize and gambling establishments”. According to the law all development of provinces by attracting investments of national and
the casinos and slot halls should be located at the distance not less than international gambling companies. In 2007 the national Armenian
50 km from Yerevan city administrative border and 10 km from the budget received about $ 2,5 mln of tax incomes from gambling business.
borders of regional centres. Starting from 2007, the mass media constantly published news of
In other words the situation is similar to the one in Russia? foreign companies entering the Armenian market. Mass media explain it
First of all we need to mention that the law in Armenia was introduced by growing attractiveness of Armenia both as a playground for
earlier than in Russia. In 2003, gaming venues in Armenia were not developing gambling business and changes in Russian legislation which
closed but rather shifted to new locations. This is unlike Russia, where restricted opportunities for developing gambling business in Russia.
authorities plan to close existing gaming business and open it anew in The main event in 2008 was entering of Storm International in the
four gambling zones. As of 1 January 2003 all the Armenian casinos and Armenian market, which in September 2007 announced its intention to
slot halls were moved outside Yerevan. build the biggest amusement complex with a casino in Armenia, with the
“According to rumours - in Caucasus, as you know, almost all the costs $ 300 mln. In April casino “Shangri La Yerevan” – as the first
information is spread in rumours - local businessmen wanted to open stage of the whole project - it was opened.
striptease clubs in premises, what became available after gambling “The gambling establishment located near the gateway from Yerevan
venues moved out; but the authorities decided to fight for morals till the on Sevansk highway is the partnership project of Storm International and
end. But on the whole moving casinos outside the cities itself went Multi Group. According to Storm Internationa`sl CEO Michael Botcher the
without problems”, (“Kommersant” newspaper as of 30.04.2008). total investments have already amounted to $7 mln…” (Armenian
newspaper “Delovoi Express”, as of 22.04.2008).
What influence did it have on the development Businessmen in Armenia hope that it will increase guest traffic in
of the whole industry? Armenian casinos including those from Russia. Moreover,
According to the Law all gambling venues today are located outside representatives of Storm International note that the environment for
Yerevan and this does not impede the development of the industry. developing gambling business in Armenia is friendlier than in Russia.
Gambling business in Armenia is actively developing; the number of “Common Yerevan citizens are both happy and unhappy with the
gambling venues is increasing every year. The Ministry of Finance and reform. It is true - schoolchildren, students and pensioners stopped
Economy regulates gambling business in Armenia, issuing casino and going to the nearest slot hall and leaving their last drams. This is good.
lottery licenses. From January 2006 to January 2008 the number of Wealthy players can easily afford to drive 10 km trip there and back in
issued licenses has increased considerably: their own car or taking a taxi since Armenian taxis are very cheap...
(“Kommersant” newspaper, as of 30.04.2008)
What are the statistics on Based on mass media publications one can say that there is a
Armenian gambling establishments? reasonable gaming regulation. There are no editorials on social danger or
According to mass media, as of the beginning of 2008, there were more gambling addiction. At the same time this type of recreation is available
than 50 gambling venues in the Armenian market. to well-to-do people. Armenian mass media keep on promoting message
Could you name the biggest Armenian casinos? that many public officers and National Assembly deputies are regular
Among the biggest and most respectable casinos I could name guests of the casinos where they “lose millions”.
“Shangri La Yerevan”, “Million”, and “Senator”. Other establishments “In the recent 2-3 years mass media spread information on gambling
have sign “casino” but in reality they are nothing else but night clubs addictions of top state executives. Indeed we play on political field, not in
and slot shops. casino”, - said G. Saakyan. We want to remind of the incident – one of a
What other types of gambling activities are popular in Armenia? row – that happened with the businessman Tigran Arzakantsyan, deputy
The allocation of on-line casino servers is forbidden on the territory of of National Assembly – he got gunshot and knife wounds in one of
Armenia. Speaking of betting shops I would mention two largest chains Moscow casinos and now is being treated in the hospital.
“VIVARO” and “EUROFOOTBALL”. There are also poker clubs in (KavkazWeb.net, as of 06.10.2007)
Armenia, but they are not that popular. At the moment there are no Speaking of the prospects of the Armenian gambling business we
national lotteries in Armenia; starting from 2009 there will be launched should mention the initiative of the Armenian law-makers of June 2008,
national lottery draws with the tickets from lottery terminals. which stipulates moving amusement centers outside Yerevan. This move
What is mass media attitude toward gambling business in Armenia? was fueled by multiple complaints of Yerevan citizens of high noise level
The image of the Armenian gambling business is quite neutral due to near amusement centers at night-time. However the legislators are being
the measures taken by the government in recent years, and first of all – very discreet in comments on this initiative and note that changes will be
moving big casinos outside Yerevan. According to the law “On games applied to amusement centers located on ground floors of multistory
with money prize and gambling establishments “, starting from buildings.
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APRIL 2009
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