News4Amuse has asked to make comments about last events in gambling industry in Ukraine the Chairman of Board of directors Lyubov Loginova (Alsart Group), one of the leading gambling operators in Ukraine.

News4Amuse (N4A): Lyubov, what do you think about situation regarding prohibition of gambling activity in  What problems has the operators of casinos and slot halls had?
Lyubov Loginova (LL): We have disapproved of the situation. Furthermore it aroused shock. In the eyes of foreign investors business image of Ukraine has sent reeling. All slot halls and casinos in Ukraine are closed. The country is losing big sums of investments, practically the current legislation is changed, the Constitution is violated. The licensees were given for 5 years, investors was on firm ground during this time. Because of the situation with gambling in Russia, Alsart Group has invested much means to Ukraine, opened 75 gambling establishments and planned to open three one this month. Unfortunately, these plans was broken.
According this situation the question is arising. Which guarantees does Ukraine give to investors? We has acted according to the law! Remind that each license has cost 150 000 euro!   

N4A: How the prohibition of the gambling has reflected on business of Alsart Group in Ukraine?  
LL: We have closed all our gambling halls according to the act of Ministry of Finance about fall into abeyance of license. Personnel is in indefinite leave. We are not waiting for favorable terms, the most important is to understand rules either it is possible to work or not. It is impossible to work when the legislation is changing every day.       

N4A: In your opinion to which consequence can the prohibition lead to? 
LL: The prohibition will lead the business to the “shadow”, corruptness of government, unemployment, and criminalization. The situation was compounded by crisis; people lost their work, and now was compounded by prohibition of gambling business. Over 500 thousand people lost their work in Ukraine. The labor registry office doesn’t take people anymore because no money in budget for payments. The situation will be that people will work for food or the situation will put up to the crimes. In the country is very serious situation.  
 
N4A: It’s rather strange that the reason of the prohibition became the fire in the one slot hall… And in Ukraine was offered to create gambling zones as in Russia. How do you think, why have they chosen the Russian way of the gambling’s regulation? 
LL: It is the government relations. Shutdown of gambling business in Russia and unpreparedness of gambling zones will lead to a huge capital export and players from Russia to Ukraine. Ukraine is very comfortable “zone” for Russian players. There are good infrastructure of restaurants, hotels, different kind of amusement. The time to reach it is one hour by plane. The government doesn’t want such turn of events. That’s why Russian lobby. It is possible to predict that the next country with the same destiny will be Belorussia. Remind that Kazakhstan has already closed. 

N4A: What the Ukrainian operators of slot halls and casinos should do to save their business?   
LL: We are sure on 99,9% that gambling business in Ukraine has no future in format it was before.  
Now all the market is waiting, everybody is waiting for something. There is nothing left to wait. It needs to divest assets, fire personnel, lease the premises, reduce costs. We have had such experience in Russia, when we have waited for  legislative review, taken the equipment on warehouse, left personnel, paid for rent.              
Now I understand that it was more profitable to sale slot machine for 100$ than keep it a year on warehouse, pay for rent, and after also pay for utilization. Nowadays there are no such markets for selling used equipment, all the world go through economic recession, oversupply of production is, Russian and Ukrainian markets are closed and there are 500 000 units of gambling equipment need to sell. 

News4Amuse