Russia's gambling zones opt for import substitution amid sanctions

Business & Economy November 08, 2022, 23:19

Its entire volume of electronics is currently purchased in Asia, although earlier this process took place through European companies, head of the Association of Operators of Entertainment Industry and Sports Events Dmitry Anfinogenov said

SOCHI, November 8. /TASS/. Gambling zones in Russia are swapping European-made casino equipment for Asian and Russian ones, Dmitry Anfinogenov, head of the Association of Operators of Entertainment Industry and Sports Events, told TASS.

"The Krasnaya Polyana gambling zone has changed a number of its suppliers. Its entire volume of electronics is currently purchased in Asia, although earlier this process took place through European companies," Anfinogenov pointed out.

He specified that the gambling zone also replaced European playing cards with Asian ones. Uniforms for Krasnaya Polyana employees were purchased in England, but now they get them in Russia. Before the sanctions, household chemicals, napkins, and disposable tableware were purchased from the Swedish company Duni, but now they are bought strictly from domestic manufacturers.

"As for roulette wheels, Russia produced them before. Now gambling zones are looking into this alternative," he added.

As far as logistics goes, according to Anfinogenov, it has become more complicated, which, in particular, has led to price hikes on imported components.

"In particular, the Yantarnaya gambling zone, in the Kaliningrad region, is exploring options for purchasing gaming equipment in friendly countries, since now there are difficulties in conducting transactions in dollars and euros. In the Primorye gambling zone (in Russia’s Far East - TASS), they are talking about longer delivery times and are going to use their proximity to transport hubs in China and South Korea," the official said.

On poker tournaments and absence of foreign visitors

Anfinogenov also recalled that the world's major poker companies such as Poker Stars, partypoker and others had left the Russian gambling industry amid the sanctions barrage. This triggered a significant decline in holding poker tournaments, he noted.

Nonetheless, this can stimulate the development of the domestic industry, he added.

"For a long time, the gambling zones of the Russian Federation formed their own poker market, which later grew into their own Russian championship. And by the time the poker giants left, the brand of the Russian Poker Championship had already significantly strengthened. This suggests that our own products in this industry do exist, and they will expand and develop," Anfinogenov contended.

Another problem is that foreigners rarely come to the gambling zones of Russia now. First this was due to the Covid pandemic and now because of the political situation.

"The absence of direct flights by international airlines has significantly reduced and limited the flow of foreign visitors. Previously, uninterrupted flights with other countries successfully supported the business. For example, we had a successful experience in working with Israeli partners. They were interested in selling tickets for their flights and accommodation in our hotels. Based on this, we made package tours and people were happy to fly to us. As for other airlines, such tours have ceased to be profitable," the official said.

A similar situation is now in the Primorye gambling zone, which was primarily focused on attracting tourists from Asia. After the borders were closed amid the Covid pandemic, the tourist flow from Asia stopped, but industry experts hope that it will resume in the future.

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