In other words the situation is similar to the one in Russia?

First of all we need to mention that the law in Armenia was introduced earlier than in Russia. In 2003, gaming venues in Armenia were not closed but rather shifted to new locations. This is unlike Russia, where authorities plan to close existing gaming business and open it anew in four gambling zones. As of 1 January 2003 all the Armenian casinos and slot halls were moved outside Yerevan.

"According to rumours - in Caucasus, as you know, almost all the information is spread in rumours - local businessmen wanted to open striptease clubs in premises, what became available after gambling venues moved out; but the authorities decided to fight for morals till the end. But on the whole moving casinos outside the cities itself went without problems", ("Kommersant" newspaper as of 30.04.2008).

What influence did it have on the development of the whole industry?

According to the Law all gambling venues today are located outside Yerevan and this does not impede the development of the industry. Gambling business in Armenia is actively developing; the number of gambling venues is increasing every year. The Ministry of Finance and Economy regulates gambling business in Armenia, issuing casino and lottery licenses. From January 2006 to January 2008 the number of issued licenses has increased considerably:

What are the statistics on Armenian gambling establishments?

According to mass media, as of the beginning of 2008, there were more than 50 gambling venues in the Armenian market.

Could you name the biggest Armenian casinos?

Among the biggest and most respectable casinos I could name "Shangri La Yerevan", "Million", and "Senator". Other establishments have sign "casino" but in reality they are nothing else but night clubs and slot shops.

What other types of gambling activities are popular in Armenia?

The allocation of on-line casino servers is forbidden on the territory of Armenia. Speaking of betting shops I would mention two largest chains "VIVARO" and "EUROFOOTBALL". There are also poker clubs in Armenia, but they are not that popular. At the moment there are no national lotteries in Armenia; starting from 2009 there will be launched national lottery draws with the tickets from lottery terminals.

What is mass media attitude toward gambling business in Armenia?

The image of the Armenian gambling business is quite neutral due to the measures taken by the government in recent years, and first of all - moving big casinos outside Yerevan. According to the law "On games with money prize and gambling establishments ", starting from December 2002 the activity 49 big gambling venues was stopped and they should be moved out of the city. According to mass media moving gaming business outside the capital and regional centers favored the development of provinces by attracting investments of national and international gambling companies. In 2007 the national Armenian budget received about $ 2,5 mln of tax incomes from gambling business.

Starting from 2007, the mass media constantly published news of foreign companies entering the Armenian market. Mass media explain it by growing attractiveness of Armenia both as a playground for developing gambling business and changes in Russian legislation which restricted opportunities for developing gambling business in Russia.

The main event in 2008 was entering of Storm International in the Armenian market, which in September 2007 announced its intention to build the biggest amusement complex with a casino in Armenia, with the costs $ 300 mln. In April casino "Shangri La Yerevan" - as the first stage of the whole project - it was opened.

"The gambling establishment located near the gateway from Yerevan on Sevansk highway is the partnership project of Storm International and Multi Group. According to Storm Internationa`sl CEO Michael Botcher the total investments have already amounted to $7 mln..." (Armenian newspaper "Delovoi Express", as of 22.04.2008).

Businessmen in Armenia hope that it will increase guest traffic in Armenian casinos including those from Russia. Moreover, representatives of Storm International note that the environment for developing gambling business in Armenia is friendlier than in Russia.

"Common Yerevan citizens are both happy and unhappy with the reform. It is true - schoolchildren, students and pensioners stopped going to the nearest slot hall and leaving their last drams. This is good. Wealthy players can easily afford to drive 10 km trip there and back in their own car or taking a taxi since Armenian taxis are very cheap... ("Kommersant" newspaper, as of 30.04.2008)

Based on mass media publications one can say that there is a reasonable gaming regulation. There are no editorials on social danger or gambling addiction. At the same time this type of recreation is available to well-to-do people. Armenian mass media keep on promoting message that many public officers and National Assembly deputies are regular guests of the casinos where they "lose millions".

"In the recent 2-3 years mass media spread information on gambling addictions of top state executives. Indeed we play on political field, not in casino", - said G. Saakyan. We want to remind of the incident - one of a row - that happened with the businessman Tigran Arzakantsyan, deputy of National Assembly - he got gunshot and knife wounds in one of Moscow casinos and now is being treated in the hospital. (KavkazWeb.net, as of 06.10.2007)

Speaking of the prospects of the Armenian gambling business we should mention the initiative of the Armenian law-makers of June 2008, which stipulates moving amusement centers outside Yerevan. This move was fueled by multiple complaints of Yerevan citizens of high noise level near amusement centers at night-time. However the legislators are being very discreet in comments on this initiative and note that changes will be applied to amusement centers located on ground floors of multistory buildings.

Does Alsart find Armenian market interesting? Do you consider entering the Armenian market?

Under the current conditions in Russia where gambling business is being pushed out, we are extremely interested in entering new markets, though one cannot say that Armenia is a new market for us. We have opened representative office in the very centre of Yerevan, one of the biggest Armenian casinos "Senator", 800 sq m space is Alsart Group project. This casino has more than 100 slot machines from world leaders. Moreover, casino offers a wide choice of live games.

Generally Armenian market is characterized by old stock of slot machines with low payout percent. Alsart offers all kind of up-to-date amusement equipment and spare parts from the world famous producers - from slot machines and roulettes to cards and chips.

In the near future we open another casino in Armenia "Senator Club" - a venue of over 1000 sq m, with 18 live game tables and more than 100 slot machines. In 2009 we plan to open in Armenia slots, betting and bingo halls.

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