Tigran Sargsyan’s answer to Gagik Tsarukyan

Prime-minister Tigran Sargsyan has had a discussion with representatives of casinos. Casino owners were in the government to complain to the PM.

Casino businesses are not happy about the amendment to the law on casinos and gamble houses, according to which starting from January 1, 2013, casinos and gamble houses shall operate in Tsakhkadzor, Jermuk and Sevan administrative districts only, and in case of the government’s approval for investments in such businesses exceeding 40 billion drams, in locations out of Yerevan approved by the government.

The casino owners complained to the PM that if a casino business was built closer to Yerevan with investment exceeding 40 billion, it could become a monopoly and would press their businesses out. The participants of the discussion did not mention specific large casino businesses (or simply they don’t publish this name), but said that it was planned to open one such large business in 2013.

At first glance this information does not include specific targets, but there are interesting clues between the lines. Even though they do not specify which large casino is going to be operated in 2013 to undermine the other small businesses. It is not difficult to guess. Forty billion drams, or hundred million dollars is a huge investment, this very few people can afford such investment in Armenia. There is only one large construction with huge investment, which is Prosperous Armenia party leader’s property build in the form of a pyramid near the highway from Yerevan to Sevan. This summer representatives from the world Kempinski visited Armenia for the purpose of signing an agreement to undertake the management of this leisure complex. They mentioned that the complex was so large that would be able to host seven thousand people at one time.

If this law stays as it is, the casinos in the area from Yerevan to Sevan will have to be closed because no one will visit Sevan or any nearest area if they have a larger and better complex in a closer location.

Tigran Sargsyan shared their opinion. “I am not a kind of person that likes to use the services of your sector, I mean I think gambling does not look good for an Armenian man. But I agree with the facts you brought. We have to create mechanisms for controlling this sector, which will regulate the business operation of small and medium businesses but would keep the society away from unnecessary risks,” said Tigran Sargsyan. The prime-minister said that he was against any type of monopoly in any sector and recommended the participants to submit their recommendations to the finance ministry for the purpose of looking at them and also discussing the international experience to find solutions. Meanwhile, the PM instructed the finance minister Vache Gabriyelyan to develop a legal mechanism that would prolong the application of the law for one year till they would develop a new package and discuss the issue again. The casino owners thanked the prime-minister for his support to their petition.

It seems that this is a simple and regular issue. However, in the current political situation and after the PA’s critics to the prime-minister calling on for his resignation this meeting and decision seems more to be an answer on the part of the prime-minister. In Armenia businesses are not happy about the situation in many sectors, but it is very rare for a group to visit the PM and leave the government’s building being satisfied. Whatever it is, even though the PM said that he is not a kind of person that likes the services of casinos, this action has political stimulus behind it.

Even if it is not politically motivated, it means that the government is not competent because two years ago they adopted a law regulating the sector, and now they find out that they have adopted a law containing monopoly risks.

This law was adopted at time when Tigran Sargsyan had been in office for two years. This law was developed by his government. In fact the government admits of having made a mistake As it doesn’t often happen when the government admits having made a mistake, it is clear that there was a big wish to give an answer to Tsarukyan’s critics.