October 27, 2016 Sochi will host RGW Sochi – gambling event dedicated to the creation of Krasnaya polyana gaming zone. We are exploring the subject and decided to meet with Maria Lepschikova, the lawyer of PL LLC, in order to discuss legal aspects of gaming zone operation in the region. The expert has more than 12 years of experience in legal support of lottery and gambling business and an insider’s knowledge of gambling situation in Sochi.
Interviewer: Russian Gaming Week Sochi (RGW)
Expert: Maria Lepschikova (M.L.)
M.L.: According to Article 12, p.4 of the Federal Law № 244-FZ, starting from the date of approving Krasnaya polyana gaming zone boundaries by the government of the Russian Federation, designated purpose of the land parcel inside this boundaries has been changed, and since this date the land can be used for organization of gambling venues and provision of related services.
In addition, according Article 12, p.3 of the Federal Law № 244-FZ, the government authority of Krasnodar Krai is empowered to provide management of the gaming zone. It means that lessor can lease the land inside the boundaries to gambling activities organizers (including legal entities that satisfy particular requirements). After leasing the land, the latter has the right to organize gambling venues within the territory of the gaming zone. The land within the territory of the gaming zone can be also leased by the third parties for the provision of the related services. Obviously, before the determining of territory boundaries by the government of the Russian Federation, such lease was impossible.
Organizers of gambling activities can operate within the gaming zone territory only by virtue of special permission, provided by the government authority of Krasnodar Krai, which is empowered to provide management of the gaming zone.
From the legal point of view it means that the company interested in operating in Krasnaya polyana gaming zone should prove (by providing corresponding documents) its eligibility and then following formal procedures get a permission for operating in the gaming zone (lease agreement, permissions etc.).
Thus, currently the development of the gaming zone depends on the amount of companies, which have applied or will apply for the permission for operating there.
RGW: How will the infrastructure of Gorki Gorod affect the development of Sochi gaming zone?
M.L.: It should be noted that among all gaming zones created in accordance with the Federal Law № 244-FZ, Krasnaya polyana is the most developed land parcel in terms of infrastructure. It is not an open country that Azov-City got.
Therefore, the availability of developed infrastructure inside and/or near the land parcel will facilitate the beginning of the gaming zone operation. Previously when allocating the land for gaming zones (except for Krasnaya polyana) the government of the Russian Federation had to comply with legal requirements as for its location: the gaming zone shouldn’t be located near the boundaries of inhabited areas. And if there are no inhabited areas, there is no infrastructure. Krasnaya polyana became the first exception from the rule.
RGW: What else should the government do in order gaming zone could replenish the budget?
M.L.: Taking into account the discussed above issue regarding the infrastructure, perhaps the only thing left is to issue permits for operating within the gaming zone to the companies, which will fill it with objects of taxation. Such objects include each gambling slot and each gaming table.
RGW: What are the prospects for foreign investors?
M.L.: In accordance with Article 6 of the Federal Law №244-FZ, the organizer of slot machine halls and/or casinos should be a legal entity established/registered within the territory of the Russian Federation, which has net assets amounting to not less than 600 million rubles (calculation method is specified by the Russian government), and founders of such a legal entity should have no unexpunged or unspent convictions for economic crimes or any deliberate medium-gravity and grave crimes.
Organizers of gambling activities should be annually audited and add the results of the audit to their official statutory reporting. They are also obliged to provide regular information on the beneficiaries and other information specified by the Russian government.
Thus, foreign investors can consider the possibility of working in Krasnaya polyana only on the behalf of a Russian legal entity, which they will have to either create or buy a stake in.
In any case, to find a way of legalization of foreign investors is possible.
RGW: There is legal bookmaking within the territory of Sochi already. What will be the changes for the business after opening a gaming zone in Krasnaya polyana?
M.L.: It should be noted that the format of the gaming zone and betting shops outside the gaming zone are two different things. Betting shops are usually opened in crowded places with high traffic, i.e. one can visit betting shop just on the way, but in order to visit gaming zone you have to go there intentionally.
I’m a lawyer, not a marketing analyst, but I can assume that bookmakers operating on the territory of Sochi may currently have a kind of “secondary gain” from the opening of Krasnaya polyana. The opening of the gaming zone implies the development of junket tourism in the region. Hence, not all tourists that come to play will stay in hotels within the boundaries of the gaming zone. Many of them may want to combine their travel with other leisure activities, and the flow of gambling tourists to the city may have a positive impact on the operation of Sochi bookmakers outside the gaming zone as well.
RGW: How will new gaming zone in Sochi coexist with Azov-City till 2019?
M.L.: From my own experience I can say that Krasnodar Krai is large and Azov-City gaming zone is not very close to Sochi.
I believe that they will not compete. Especially, if taking into account the fact that Azov-City has already formed its pool of customers, and Krasnaya polyana is designed for foreign tourists mostly. At the same time the opening of Krasnaya polyana requires some more time. So I would say that the two zones will coexist in 2017-2018, without interfering with each other.
However, it should be noted that companies operating in Azov-City gaming zone are commercial legal entities. If they understand that there is no profit in the zone, they may stop their operations in Azov-City even earlier than January 1, 2019. At least it is their right to choose how and when to work within the term, specified be the law.
Get more information about Krasnaya polyana gaming zone at the industry forum RGW Sochi.
Buy tickets to the event at: https://goo.gl/8D0d4w.
Login Casino edition turns 13 years
The Login Casino team wrote its first article on gambling 13 years ago. For over 10 years readers and partners of the magazine have been supporting the resource’s initiatives, which Login Casino is very thankful for. It is high time we summed up the results and shared our plans for future.
Login Casino was founded in 2006 as the first and the only printed publication that highlights special features of gambling business development in the CIS region and foreign countries. For the following years, our team has released 52 issues of the magazine. However, in order to insure its relevance in respect of contemporary challenges of the informational era and preferences of its readership, five years ago the format of the publication was changed. Now Login Casino is also available online.
Reformatting helped the magazine to bring to life many projects: establishing its award with an aim of identifying and awarding the leading representatives of the Russian betting industry, expanding the text news format to video programs, conducting at least one hundred interviews and web-conferences with representatives of the gambling industry, which helps to deepen the viewers’ knowledge about gambling business.
Hard work is always rewarding, thus the team has managed to improve the format by creating unique content, which gambling industry stakeholders will definitely find interesting. But figures speak for themselves much better than words. Login Casino’s achievements:
nine thematic events during the past year;
over five years of online operation has expanded the team to 50 specialists;
last year LC provided informational support for 47 thematic conferences;
in 2018 alone Login Casino events had 13 352 participants;
launching three large-scale projects: Login Casino Awards, InfoTarget, and Login Casino TV.
Nevertheless, the team is not planning to rest on its laurels and will use the implemented projects as a base for new accomplishments.
Login Casino wants to express special gratitude to its readers, whose feedback and suggestions are improving our magazine day by day. Tell its creators which project you personally consider the most useful and successful. We are looking forward to your comments.
Login Casino webinar “Traffic Arbitrage – what is it and how to deal with it in gambling?”
What: Gambling business magazine Login Casino offers you a webinar entitled “Traffic Arbitrage – what is it and how to work with it in gambling?” We have brought together the gambling industry experts that will share their exclusive experience on the markets of Europe and the CIS region and will also shed light on the special features of the traffic arbitrage for the gambling industry.
Where: In order to take part in the event one has to register. Registered users will receive an active link to the webinar on the day of the event.
When: The two-day webinar is scheduled for May 29-30 at 16:00 MSK. Length of the webinar – 3 hours.
Format of the event: live broadcast.
What information will the webinar provide the viewer with?
Subject matter of the presentations:
- legal nuances of operating on the iGaming market in 2019;
- benefits of cryptoindustry in gambling;
- how to get the first traffic in competitive niches;
- affiliate marketing: understanding of internal processes and mechanisms of online casino promotion;
- mobile traffic arbitrage in gambling;
- ADULT-traffic conversion in gambling;
- working with iGaming affiliate programs or bloody marketing.
This and much more will be highlighted by the speakers of the webinar:
- Tatyana Nasonova
(Arbitrator, creator of the public page “Surovyj Piterskyj Arbitran” (“Суровый Питерский Арбитран”) and an arbitration team Black Inc.)
- Konstantin Novofastovskyj
(Head of advertising traffic audit service ClicFrog.ru)
(Lawyer at Pravovaya Liniya, LLC, expert in law issues and in the field of legal support in gambling and lottery business)
- Roman Bout
(Founder and general manager of Quintessence – a company that specializes in customer service in Russia and the CIS countries)
- Vyacheslav Ustimenko
(Lawyer, entrepreneur, investment analyst and founder of the law company LawBoot).
But that’s not all. In order to find out the full list of speakers and topics, which they are going to highlight, and get familiar with the program – keep track of Login Casino updates!
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Because the Login Casino two-day webinar is a perfect opportunity to receive all the information you need about traffic arbitrage in gambling within a short time frame – concisely, comprehensively, in a flexible way, and most importantly – there is no need to get off your couch.
Cross-section of the most up-to-date information that has been specifically prepared by the gambling industry experts for the webinar participants.
You have not registered yet? Then here is the basic argument:
“I do not offer a Costa Rica license, because such item does not exist. I don’t wear a jacket or a tie, though I am a lawyer. In the morning I make a phone call to Malta, in the evening – to Curacao. During breaks I record videos about gambling for my YouTube channel”. – This is a self-presentation of one of our speakers – Vyacheslav Ustimenko. And now try to imagine how interesting it will be to listen to his speach about cryptocurrency payments and KYC rules, work with Appstore and Google Play as well as limitations for Visa and MasterCard payment Systems.
Do you have a clear picture now? Then do not hesitate and register. See you at 16:00, May 29.
The Login Casino Awards 2018 Winners Are Chosen
For the past eight weeks readers of the magazine and industry experts were taking part in the voting Login Casino Awards to choose the leaders of the gambling industry. Now we are happy to announce the names of the winners in six nominations.
The results of the voting showed that the winner in the category Best Marketing Campaign is betting company Betcity. Their campaign Cashback for Unsuccessful Bets included guaranteed returns of bettors’ funds in the form of free bets.
Moreover, our readership identified BETCITY as Best Betting Company 2018. Throughout the year, it was not only introducing promotional offerings for its clients, but also working hard on improving the quality of service and partnering with the leading sports leagues of Russia.
“We were anxiously watching the voting numbers updating every day, and today we are happy to announce the winners! Throughout the whole year, we were watching and monitoring what surprises betting companies created for their customers, and slot game developers – for their partners and slot machine lovers. We had selected the best nominees for the voting, and the winners became the best of the best! We warmly congratulate our prizewinners and look forward to the next year to hold the new edition of Login Casino Awards! Impress the market with your developments, create new products, stay tuned!” said Daria Temnenko, Brand Manager at Login Casino.
Slot game Kamchatka, developed by Endorphina, was recognized as the most interesting, colorful and high-quality slot. Its distinguishing features included bright but natural graphics as well as high RTP rate, a bonus game, free spins, and a jackpot. The combination of everything abovementioned, which is an uncommon case with developers, could not leave the industry experts and slot machine lovers indifferent.
Besides, the list of winners also includes:
- Nikolay Oganezov, chairman of the bookmaking subcommittee of Russia’s Chamber of Commerce and Industry, in the nomination “Person of the Year”.
- Tom Horn Gaming – best slot developer. Game multifunctionality, thematic diversity and unique approach to slot creation, including graphics hand painting, brought the company to the first place.
- Slotegrator received the well-deserved title Innovator of the Year. Apart from enhancing its already existing products, in 2018 the developer implemented a solution that allowed its customers and partners to simplify the process of integrating a number of payment systems.
The Award Ceremony can be viewed here: https://www.youtube.com/watch?v=RUiy8E0a3tU
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