OREANDA-NEWS. June 16, 2008. A major European gambling operator, Casinos Austria confirmed the data on its intention to take part in “Azov City” project. The information on the likely participation of Casinos Austria in the project of the southern gaming zone had appeared last week, from Krasnodar region Department of Investments and Project Design Support. According to the Department, after the official presentation of “Azov City” the company entered a memorandum of strategic partnership with the administration of Kuban.

Casinos Austria International confirmed the information. “Yes, we are going to enter “Azov City” but it is only a letter of intent so far, no major agreement has been made yet,”  the head of the company`s New Business and Strategy Direction Reinhardt Berncop-Schnurh said. “In the coming weeks we will meet the administration`s representatives and discuss terms and conditions of our cooperation.”

Krasnodar is obviously committed to hooking Casinos Austria right as an expert in the gaming market and as a casino operator, and the negotiations will take this direction. Mr Berncop-Schnurh says Casinos Austria sees itself as a casino operator but not as a developer, and does not think it impossible to take part in bidding for the initial 100 hectares of land in “Azov City”.

However, representatives of the Russian entertainment industry doubt prospects of the Austrian operator`s involvement. “I do not believe that Casinos Austria will come and bury its money in the middle of nowhere,” says Mikhail Bartnik, a representative of Reginonal Association of Gambling Operators (RADIB) in the Southern Federal District. “They will be waiting, investigating, looking at the legislation changes. How could one invest funds in the project under the lack of investment conditions, without which no business plan can be formed.”

“It is not unlikely that Casinos Austria will limit itself by doing market research for other companies. But doing research is one thing, and building casinos is quite another,” reasons a representative of a gaming chain who prefers to stay unnamed. He said that even during the presentation of the gaming zone it had seemed impossible to reach the place. “At present there are no signs of the infrastructure in the gaming zone; the first stage of launching it, which is planned by the administration, does not look like a project of gambling industry on the international level. Businesses live according to the laws of economics but there is no economic estimation there, unfortunately.”

Nickolay Oganezov, the director of RADIB, believes that the letter of intent may remain ink on paper. “The Austrians have already positioned themselves in Altay gaming zone but they have decided not to take part in the project,” he remarked. Be reminded that in December 2007 the Austrian operator was carefully looking at another gaming zone – “Sibirskaya Moneta” in Altay (the cost of which is about 30 billion rubles), however, most probably, decided its investment potential to be insufficient.