The wealth that lie under our feet and surround us have long been used for their own benefit by the developed countries. And this wealth is called tourism potential, which has various forms and types. One of such types of tourism that is profitable for the state is the gambling business. Where casinos are prohibited, this type of business still exists, but clandestinely, and generates serious income for criminals and corrupt officials. Therefore, in order to suppress illegal activities of gambling establishments and replenish the treasury, individual states legalize this type of activity. In addition, the ban on visiting continues to apply to citizens of the country, but citizens of other countries are welcomed.
The authorities of Kyrgyzstan decided to develop this type of activity, where since 2012 gambling has been prohibited in order to prevent vulnerable categories of citizens from becoming dependent on gambling.
On April 21, 2021, the Parliament of Kyrgyzstan adopted the bill in the first reading on legalization of gambling business in the country, in particular in Issyk-Kul Oblast of the country, which is the resort zone.
Then, President of Kyrgyzstan made a statement regarding the bill, where he stressed that casinos will not open for citizens of Kyrgyzstan, but only for foreigners and tourists, thereby discarding all doubts about the possible involvement of citizens of the country in gambling.
“The deputies are right to support. Is it bad if tourists' money stay in Kyrgyzstan?” the Kyrgyz President asked, adding that this practice is widespread in many countries, including neighboring ones.
What is offered?
The successful economic development of Kyrgyzstan and its position in the regional and world arena directly depend on how successfully the country's economic potential is mobilized and used. In this regard, at present, the strategic landmark of the country's development is the emphasis not only on large projects in the energy and mining industry, but also on the transition to an innovative type of economy based on the provision of services and the development of the tourism industry.
It is planned that several hotels and casinos will be built on a site of more than 1,000 hectares, where gambling will be held.
At the same time, taking into account the world experience and the experience of neighboring countries and Asian countries, it can be said that in the future, casino activities will not only bring a small income to the republic, but also expand the country's economic opportunities, give an impetus to the development of the tourism industry and attract investment in the economy to ensure sustainable economic growth in Kyrgyzstan.
What will happen to the legislation?
When adopting this law, the country's legislative body was guided by good intentions not only to replenish the state treasury, but also to a greater extent to ensure the protection of vulnerable segments of the population from the negative aspects of the gambling business.
Initiators of the draft law, deputies of the Jogorku Kenesh Baktybek Turusbekov and Dastan Dzhumabekov noted that the adoption of these bills does not entail negative social, economic, legal, human rights, gender, environmental and corruption consequences.
The undoubted advantage of the investment project to create a specialized administrative district, including an entertainment and gambling complex, is more stringent government regulation. At the same time, the services of the entertainment and gambling complex will be provided exclusively for foreign citizens only in a closed and specialized area.
The draft law also defines the special role of a specialized administrative district, including an entertainment and gambling complex, and also determines the necessary minimum requirements for them, the procedure for their creation and functioning.
What has Kyrgyzstan lost from the ban on gambling?
According to calculation of experts, the ban on gambling in 2012 and the ban in 2015 of the activities of sweepstakes and bookmakers led to direct losses of the state budget in the amount of more than 600 million soms per year and the closure of more than 11 thousand jobs.
World experience
From world experience it is clear that gambling is allowed in many countries of the world and brings billions of dollars in revenues to the state budget.
According to data of website Statista, the total market for the casino and online gambling industry worldwide from 2011 to 2019 with a forecast for 2020 and 2021 was USD 262 billion. However, due to the coronavirus pandemic in 2020, the fall was about 13.4%. The share of casinos in the global gambling market was 25%, and the leading casino in terms of revenue is Las Vegas Sands - USD 13 billion in 2019.
In Europe, gambling houses are officially allowed in 20 countries, in 4 countries cash sports betting are allowed. They are under serious control by the government bodies of the countries of Europe. According to the European Casino Association in Europe, casinos on cruise ships have become popular in recent years. The organization also notes that the most gambling countries in Europe are Italy, Poland and Spain, followed by France and Germany.
In USA, the number of commercial casinos reached 465 in 2019. Revenue from commercial gambling activities in the US in 2019 was USD 41.28 billion.
It is worth noting that half of all the world's casino companies are located in the United States. Las Vegas accounts for the majority of casino revenue. Atlantic is the second largest casino revenue, reaching USD 2.7 billion in that year. It is followed by Chicago, New York and Baltimore.
The Asian market is also considered to be the leading region in the gambling industry, generating a significant portion of the world's gambling income. According to open sources, this is due to the large population, such as India and China, as well as the constant improvement of the economic situation in Asia.
Meanwhile, specialized gambling zones in Asia attract millions of gambling enthusiasts from all over the world every year. In several countries, gambling resort centers have been created, where everything is prepared for a relaxed pastime: hotels, swimming pools, cinemas and shops, as well as gambling establishments. These include Marina Bay Sands and Resorts World Sentosa in Singapore, Galaxy Macau and Wynn Macau in Macau, Casino Royale, Deltin Royale, Casino Pride in Goa and other casinos in Manila and Hong Kong.
What's in the CIS countries and their neighbors?
Gambling activities are also developing in the CIS countries, which, according to experts in the field of gambling, bring significant income to the states. Nevertheless, there are some problems associated with the fact that this type of business is not yet characteristic of the Commonwealth countries.
According to the Slotegrator portal, the Russian gambling market, where it is concentrated in specialized zones, is estimated at USD 1 billion. “In Ukraine, the volume of the illegal gambling market is estimated at about the same, although regulation is not far off. In Belarus, according to the same source, by 2021 the legalized gambling market should bring in taxes of USD 6 million. At the same time, 50-70% of the income is brought by Russian tourists,” the specialized website “About business” cites such data.
At the beginning of 2019, the parliament of Kazakhstan considered a bill that provides for an increase in the number of gambling zones in the country.
According to Kazakh media reports, the income of gambling operators in Kazakhstan for 2020 increased significantly, breaking all previous records. At the end of the year, the income of the gambling industry amounted to 78.6 billion tenge, which is six times higher than the turnover in 2019. Almaty became the leader in terms of the volume of rendered gambling entertainment with a gross income of 57.2 billion tenge, which is 80 times more than in 2019. The capital of the country - Nursultan - took only third place in this rating with gambling establishments' revenues of 4.5 billion tenge.
In an interview with an online business publication about the gambling business, Ilya Machavariani, head of the CIS gambling practice at the international law firm Dentons, said the following about the development of gambling in the CIS countries:
“The procedures for the adoption of new legislation on gambling in the CIS countries are part of a broader process. The authorities are finally realizing that it is impossible to combat offshore gambling. The only way is to regulate them. The current international attention to these markets is partly the result of a knowledge gap between the international gambling community and the countries of the former USSR. The knowledge of foreign professionals in the bookmaking sector about the more traditional markets greatly surpasses the understanding of the markets in the CIS countries. There are several reasons for this: language barrier, cultural, business and political differences, requirements for everyone entering the country to accept local customs, unclear rules and general dissimilarity of markets. "
Thus, it can be seen that the state-regulated gambling market in specialized zones can become an additional source of income for the treasury, which will directly affect the country's economy. In addition, the emergence of additional jobs, the supply of necessary goods and services all year round will not only develop tourism, but will also reduce the percentage of unemployed in the country.
However, the question remains as to who will build these very play houses in the designated closed areas.
However, any income is better than nothing, especially in a crisis due to a pandemic and large external debt.
Kabar News Agency
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