Legislation amendments

The significant changes to the Laws «On Lotteries» and «On State regulation of activities to organize and conduct gambling, and amending certain legislative acts of the Russian Federation» were made by two Laws No. 242-FZ of 20.07.2020 and No. 270-FZ of 31.07.2020.

In general, the amendments reinforce the requirements to the lottery and gambling companies.

Thus, the lottery companies are now obligated to disclose information not only to the lottery organizers, but also to the State supervisory authorities. Among such information is data on:

  • beneficial owners,
  • individuals and legal entities, which are shareholders or members of the lottery and gambling companies,
  • members of the board of directors or the supervisory board,
  • executive board members,
  • persons serving as single executive body,
  • persons who have significant, direct or indirect influence on the decisions of corporate bodies

and also the documents confirming the above information.

The term «beneficial owners» corresponds to the relevant description defined by the Federal Law No. 115-FZ of 07.08.2001 «On Countering money laundering and the financing of terrorism». Thus, the beneficial owners of the lottery and gambling companies are understood to be individuals who ultimately, directly or indirectly, or through third parties, own (i.e. have more than 25% of share capital) a legal entity or have the ability to control its activities.

The ban on acting as a shareholder, member, beneficial owner, member of the board of directors or the supervisory board, executive board member, single executive body of the lottery and gambling companies is set for persons who have outstanding criminal records for financial crimes, crimes against the state authorities or for intentional crimes of medium gravity, serious and the gravest crimes.

Among legal entities which cannot act as shareholders and members, persons with significant, direct or indirect influence on the decisions, single executive bodies of the lottery and gambling companies are legal entities registered in the states or territories with the preferential taxation or territories that do not disclose information on financial transactions (offshore zones) and included in the list approved by the Ministry of Finance of the Russian Federation.

The amendments will come into force on October 19, 2020.

Besides, the list of events with the possibility of accepting bets by bookmakers and betting houses will be cut. The requirements for equipment in service areas of the bookmaker's offices, betting houses, their processing centers and the service areas for gambling participants have been tightened. The specifics of suspension and revocation of licenses on organization and conduction of gambling at bookmaker's offices or betting houses are clarified. Such licenses should be reissued until September 29, 2021, i.e. within 1 year from the date of entry into force of the Federal Law No. 270-FZ of 31.07.2020.

Gambling organizers, which make bets on sports events in the bookmaker’s offices, are required to make purpose-oriented allocations to invest the development of children's and youth sports. The basis for these allocations are agreements on provision of information about conducting sport competitions with professional sport entities, which, in turn, are required to post the list of concluded agreements, data on received funds in the form of purpose-oriented allocations from gambling in the reporting calendar year and data on allocation of funds on the official websites.

All information related to the lottery and gambling companies (including historical data) is available in the Information and Analytical system Globas.

Largest hotels of Russia by 2019 revenue

Events of 2020 will become history. COVID-19 pandemic changed the style of life for all people, and limited freedom of choice and movement. Tourists from all over the world could not carry out their travel plans, and the majority of countries were forced to close boarders due to COVID-19 outbreak. As a result, spring and summer tourist seasons failed. However, domestic tourism in Russia started on July 1, 2020. Therefore, the Information Agency Credinform has prepared a ranking of the largest hotels of Russia. Using the Information and Analytical system Globas, the experts of the Agency selected TOP-10 hotels of Russia by 2019 revenue, and analyzed their income.

Hotel complex Izmajlovo, Radisson chain of hotels (excluding Hotel Ukraina) and resorts in Sochi – Rosa Khutor and Krasnaya Polyana are not included in the ranking because they are chain of hotels and have more than 1 tourist accommodation facilities.

Table 1. TOP-10 of the largest hotels of Russia by 2019 revenue, and their income
No. Name Revenue, billion RUB Income, billion RUB
1 Taleon Imperial Hotel
Saint Petersburg
4,9 - 9,6% 7,4
2 Hotel Ukraina
3,6 - 14,0% 3,8
3 Lotte Hotels Moscow
3,5 -21,0% 5,2
4 Ritz Carlton Moscow
2,9 -26,0% 2,9
5 Metropol
2,3 - 11,0% 3,2
6 Four Seasons Hotel Lion Palace St. Peterburg
Saint Petersburg
2,1 -6,5% 3,7
7 Astoria
Saint Petersburg
1,8 - 3,0% 1,9
8 Grand Hotel Europe
Saint Petersburg
1,6 - 1,7
9 Hotel Cosmos
1,6 - 9,3% 1,9
10 Hotel National
1,1 -17,0% 2,9

Taleon Imperial Hotel with the highest revenue of 4,9 billion RUB is ranked the first. The hotel is located at the historical center of Saint Petersburg, 5 minutes from the Palace Square and Winter Palace. The location and the hotel itself have long history. By the order of the Empress Elizaveta Petrovna in 1755, during the construction of the Winter Palace, temporary wooden Winter Palace was built at the intersection of the Moika River and Nevsky Prospect. In 1766, it was demolished by the Order of the Commission on the stone construction of Saint Petersburg on the ban on construction of wooden buildings. In 1771, the classical style palace was erected on the same area, and this was the beginning of Taleon Imperial Hotel long history.

Hotel Ukraina is ranked the second by revenue (3,6 billion RUB). Built in 1957, now the hotel is the last Stalinist style skyscraper in Moscow. Initially, it should be named as hotel building in Dragomilovo, and the name “Ukraina” was given under N. S. Khrushchev's rule. It is the Stalin's empire style building with a total space of over 88 thousand square meters and 206 meters height. The hotel stands in front of the House of the Government of the Russian Federation. Since 2019, the building is under the management of Radisson Hotel Group.

The third in the ranking is Lotte Hotels Moscow (3,5 billion RUB), the chain of international luxurious hotels owned by the South Korean company. There are 4 accommodation facilities under the Lotte brand in Russia, located in Moscow, Saint Petersburg, Samara and Vladivostok. Total 2019 income of the hotels in Russia amounted to 5,2 billion RUB.

Ritz Carlton Moscow (2,9 billion RUB), another chain of international hotels, is the fourth in the ranking. Ritz Carlton manages over 90 accommodation facilities in 30 countries. The hotel in Moscow was opened in 2007.

Then follows Metropol with the revenue of 2,3 billion RUB. One of the oldest hotels of Moscow is traced back to 1905. The modern style building is an object of cultural heritage. It owes its origin to entrepreneur and merchant Savva Ivanovich Mamontov. The greatest artists of the time took part in facades and interior decorations.

Four Seasons Hotel Lion Palace (2,1 billion RUB) is ranked the sixth. The hotel belongs to the international chain of luxurious hotels. It is popularly known as the “House with the lions,” as two white-marble lions guard the main entrance. This object of cultural heritage is the work of architect Auguste de Montferrand. Initially, the building was not supposed to be a hotel. The hotel was opened after the reconstruction in 2013.

The sevenths position belongs to Astoria with revenue of 1,8 billion RUB. The hotel is 2 minutes from Four Seasons Hotel Lion Palace. The official opening took place in 1912. During the First World War, the hotel complex accommodated high command officers of the Russian Empire. In the Soviet period, it was the 1st house of Petrosovet where top officials of the communist party lived. The story is that the leaders of Germany were going to celebrate the capture of Leningrad in Astoria, and even printed invitation cards. Fortunately, this did not happen.

Another famous hotel of Saint Petersburg, Grand Hotel Europe, is ranked the eighth with 1,6 billion RUB in 2019. World Travel Awards recognized it as the most luxurious hotel in Europe and the world. Each suit has the unique name and style. For example, one of the suits is named in honor of Fyodor Mikhailovich Dostoevsky, who stayed in the hotel for several times.

Hotel Cosmos near the Exhibition of Achievements of the National Economy in Moscow has the ninth position by revenue (1,6 billion RUB). The hotel was built to accommodate foreign guests during the summer Olympic Games in 1980.

Moscow hotel National (1,1billion RUB) is the last in the ranking. Currently, it is the only Russian hotel of The Luxury Collection brand.

The results of the ranking shows that all hotels from TOP-10 had decrease in 2019 revenue. The lower figures are due to the World Cup was held in Russia in 2018, and tourists and fans from 32 countries came to see the finals. After the end of the championship, the turnover of the Russian hotels returned to the usual level. However, it is expected a significant decline in 2020 revenue and income of all hotels in Russia due to COVID-19 pandemic.