- What is the legal situation about gambling business in Armenia?

- The gambling activities in Armenia are regulated by the Law “On prize games and gambling establishments”. According to the law all the casinos and slot halls should be settled in the distance not less than 50 km from Yerevan boundary and in the distance not less than 10 km from boundaries of regional centers.

- I.e. there is a situation similar to one in Russian market?

First of all it`s ought to be mentioned that law in Armenia was enacted earlier than in Russia. Dislike Russia where authorities plan to deport gambling business to four gambling zones Armenian lawmakers moved it, not deported. As of 1 January 2003 all the Armenian casinos and slot halls were moved outside Yerevan. “According to rumors (In Caucasus, as you know, almost all the information is spread in rumors) local businessmen wanted to open striptease clubs in premises empty after gambling establishments moved; but the authorities decided to fight morals till the end. The move of casinos outside city itself went without incidents”, (“Kommersant” newspaper as of 30.04.2008).

- How has “the move” influenced over the development of the whole industry?

- According to the Law currently all the Armenian gambling establishments are located outside Yerevan and this does not impede the development of the industry. Gambling business in Armenia has been actively developing; number of gambling establishments is increased every year. The Ministry of Finance and Economy regulates gambling business in Armenia, taking out licenses on casino and lottery activities. From January 2006 till January 2008 the number of issued licenses has increased considerably:

Blue color – casinos
Red color - establishments of prize games
Green color - lotteries

Source: REGNUM and  NOEV News agencies

- What is the statistics on Armenian gambling establishments?

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

- Will you please name the biggest Armenian casinos as of today?

- Among the biggest and most respectable casinos I could name “Shangri La Erevan”, “Million”, and “Senator”. Other establishments have sign “casino” but in reality they are nothing else but discos and slot shops.

- What other types of gambling activities are popular in Armenia?

Location of servers of on-line casinos is forbidden in Armenia. Speaking of betting shops I would mention two largest branching networks “VIVARO” and “EUROFOOTBALL”. In Armenia there are poker clubs which are however are not that popular. Currently there are no national lotteries in Armenia; since 2009 it will start drawing of coupons the population receives from cash registers.

- What is mass media attitude toward gambling business in Armenia?

The image of the Armenian gambling business is quite neutral. In recent years it caused by the government push of moving big casinos outside Yerevan. According to the law "On prize games and gambling establishments", as of December 2002 in Yerevan there were banned 49 big gambling establishments. According to many mass media moving gambling establishments outside the capital and regional capitals encouraged the development of provinces due to engaging investments both of national and international gambling companies. In 2007 the national Armenian budget received from gambling business about $ 2,5 mln of tax incomes.

From 2007 mass media constantly published news on foreign companies entering 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 Russian gambling business.

The main event in 2008 was entering of Storm International in Armenian market, which in September 2007 announced intention to build the biggest amusement complex with casino in Armenia, costs $ 300 mln. In April it was open first facility within the project casino “Shangri La Yerevan”.

“The gambling establishment located near gateway from Yerevan on Sevansk highway is the common 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).

Currently gambling businessmen in Armenia hope that it will increased the flood of visitors to Armenian casinos including those from Russia. Moreover, representatives of Storm International note that the environment for developing gambling business in Armenia is more friendly than in one Russia.

“Regular Yerevan inhabitants are both happy and unhappy with reform realized. Yes, schoolchildren, students and retirees quit leaving last drams. This is good. Wealthy players can easily afford to drive 10 km round trip using whether 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 competent business regulation. There are no editorials on social harmful consequence or pathological gambling. It is accepted that casino gambling is a rich and power people`s lot. Armenian mass media keep on promoting message that many public officers and National Assembly deputies being frequent visitors to casinos where they “lose millions”.

“During last 2-3 years mass media spread information on gambling addictions of public officers. Indeed we play on political field, not in casino”, - said G. Saakyan. Looking back businessman Tigran Arzakantsyan, deputy of National Assembly got involved in the latest in a series of incidents in a Moscow casino. Deputy got gunshot and knife wounds and being in hospital. (KavkazWeb.net, as of 06.10.2007)

Speaking of perspectives of Armenian gambling business it should be noted lawmakers lead as of June 2008, which stipulates moving amusement centers outside Yerevan. This lead comes from multiple complaints of Yerevan inhabitants caused by high noise grade near amusement centers in night time. However lawmakers show being discreet in comments in this regard and note that changes will be applied to amusement centers located in ground floors of multistory buildings.

- Does Alsart find Armenian market interesting? Do you consider entering in Armenian market?

Under the current Russian conditions where gambling business is pushing out we are extremely interested in entering new market, though one can not 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 features more than 100 slot machines from world leaders.  Moreover, casino offers large dealer game portfolio.

Generally Armenian market is characterized by old fleet of slot machines with low payouts. Alsart all kind of ultimate amusement equipment and spare parts from the most famous producers – from slot machines and roulettes to cards and chips.

In the near future we open another casino in Armenia “Senator Club”, which space is above 1000 sq m, 18 game tables and more than 100 slot machines. In 2009 we plan to open in Armenia slot and betting shops, bingo halls.