Dmitry Surkov. Studio Links. Moscow Walk

Shining From the Underworld

Dmitry Surkov

Introduc4on

1988 2003 – first slot machines Gambling license in Intourist Hotel distribution by Russian Sport Committee

2006 Adoption of Federal Law №244

2009 Initiation of 4 gambling zones in Russia; departure of major gambling businesses out of the country

2009-2014 “there are up to 500,000 illegal gambling institutions operating in Russia” (D. Sugrobov, Interior Ministry)

Source: http://www.casinojack.su/casino-games/istoriya-azartnih-igr-rossiya.html

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Introduc4on

Source: wikipedia.org

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… therefore the gambling ban has led to an expansion of casinos around the city

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Source: ria.ru

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Approach Qualita4ve

Quan4ta4ve

S ociology P oli4cs A rchitecture C ulture E conomics

Territory (econometric + GIS analysis)

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Research Limita4ons Geographical: Moscow area excluding “new Moscow”

Informal data: limited sources and experts due to high privacy of informa4on

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Object Defini4on 1. Ac4ve gambling dens

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Object Defini4on 2. Spaces of former casinos and slot machine arcades

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Experts Pavel Sychev, Social Ac4vist, “Molodaya Gvardiya” Member

Vladimir Ilyushin, Vice-­‐President of Gambling Entrepreneurs’ Associa4on

Anonymous, former owner of a slot machine arcade in Moscow

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Research Ques4ons

• • • • 11

What can we theore4cally understand about casinos?

Where are gambling spots now?

Which factors influence their loca4ons?

What are possible solu4ons for improvement?

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Theore4cal research Poli4cs: claimed targets vs. results of the gambling ban •

Equa4ng gambling with alcohol addic4on

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“Limita'on of gambling ac'vity for the sake of defending morality, rights and legal interests of ci'zens”

• Major investors have more doubts than reasons to invest.

• Legisla4on loopholes.

• Up to 90% of Moscow’s gambling businesses con4nued to operate a^er the ban • Well-­‐known cases of a_orneys “covering” illegal casinos • “Only 40 people in Russia were held criminally liable” (Alexander Hinstein, An4-­‐corrup4on Department) 12

Slide 4tle

malls

entertainment centers Architecture & Culture abandoned/ for rent

betting offices Source: own pictures, mosday.ru, images.google.ru

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Odintsovo experience

• Illegal casinos operate in crowded areas under “betting shop” or “internet club” signs • The society and police are tolerant • Saved the traditions of casino service (complementary snacks)

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Theore4cal and field trip conclusions S: High demand for gambling leads to high presence of informal casinos.

P: Gambling industry is not regulated effec4vely, new law on gambling zones prove to be ineffec4ve.

A&C: Former casino loca4ons switched to different sites (restaurants, malls, begng offices, etc.)

E: Informal shi^ of the gambling industry has led to a huge loss of city taxes and clientele.

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Territory: informal casinos around Moscow

Source: own map, based upon expert’s data

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Empirical research Territory: socio-­‐ economic factors

Public service

infrastructure

Source: own research

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Territory: socio-­‐economic factors

Service infrastructure Multinationals

Source: own research

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Territory: socio-­‐economic factors

Migrants (negative)

prefer safe and reliable public and commercial zones, moderately wealthy areas to anonymously establish their trade Source: own research 19

Territory: infrastructural factors

Informal casinos 2 Marketplace ATMS A_rac4ons Hotels Kindergartens Constant Observa4ons R2 Adjusted R2

0.33*** (0.07) 0.04*** (0.01) 0.05** (0.02) 0.09** (0.03) -­‐0.04* (0.02) 1.01*** (0.07) 125 0.41 0.39 Source: own research, flickr.com

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Territory: infrastructural factors

Informalcasinos = 1,01 0,33Marketplace + 0,04ATMS + 0,05Attractions + 0,09Hotels 0,04Kindergartens

Source: own research, flickr.com

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Territory: informal sectors’ linkage Coefficientsa

(Constant)

Prostitute supply Betting houses

Standardized Coefficients Beta

Sig. VIF ,000

,393

,000 1,172

,225

,008 1,172

a. Dependent Variable: Informal casinos2

Source: own research, flickr.com

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Econometric + GIS Conclusions • Illegal casino owners in Moscow city center prefer to anonymously set up businesses in relatively wealthy areas; • Gambling venues in the East are located in moderately wealthy and less criminalized areas; • Casino locations are also influenced by some infrastructural factors; • Strong link between gambling and prostitution.

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Solu4ons

• Reconsidering the definitions for gambling activities and equipment • Toughening of sanctions and responsibilities for illegal gambling activities • Organization of regulated gambling zones inside big cities (in addition to existing gambling zones)

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Izmaylovo hotels’ gambling zone

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Comments • Compromise for the state, business and gamblers • Located in a district with a high illegal gambling activity • Legal casinos used to operate here • 7,500 people hotel capacity • Away from residential area • Away from the city-center • Easy access by transport (subway, railway, automobile) • Prostitution legalization too?

Source: images.google.com

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New Arbat gambling zone

Source: own pictures, flickr.com

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New Arbat gambling zone

Source: own pictures, flickr.com

New Arbat gambling zone

Source: own pictures, flickr.com

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Comments

• Compromise for the state, business and gamblers • Located in a district with a high illegal gambling activity (illegal casinos have been uncovered in the area) • Traditionally the most popular spot for gambling activity

Source: own pictures, flickr.com

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Further research

• case-studies of foreign cities with regulated gambling zones (both of hotels and central districts) • development of adapting foreign experience to Moscow conditions (choosing the right direction)

Source: own pictures, flickr.com

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