VZCZCXRO9612
PP RUEHIK
DE RUEHAH #0185/01 0401058
ZNR UUUUU ZZH
P 091058Z FEB 10
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 4211
INFO RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 6233
RUEHBJ/AMEMBASSY BEIJING 3909
RUEHKO/AMEMBASSY TOKYO 3768
RUEHIT/AMCONSUL ISTANBUL 4477
RUCNDT/USMISSION USUN NEW YORK 1475
RHMCSUU/CDR USCENTCOM MACDILL AFB FL
RUEHVEN/USMISSION USOSCE 4384
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC

UNCLAS SECTION 01 OF 02 ASHGABAT 000185 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR SCA/CEN; EEB 
COMMERCE FOR EHOUSE/DSTARKS 
 
E.O. 12958: N/A 
TAGS: BTIO ECON EINV PGOV SOCI TX
SUBJECT: FEW CASINOS IN TURKMENISTAN 
 
REF: ASHGABAT 158 
 
ASHGABAT 00000185  001.2 OF 002 
 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2. (SBU) SUMMARY: Currently there are three casinos operating 
in Turkmenistan.  A Turkish company owns all three.  Former 
President Niyazov allowed the casinos to open in the 1990s, 
and the current president has shown no sign of closing them. 
At the same time, there are no plans to allow more casinos in 
the country, except perhaps in the Avaza Tourist Zone. 
END SUMMARY. 
 
¶2.  (SBU) A little-known Turkish firm, Tursen, owns the three 
casinos in Turkmenistan.  All three are located in Ashgabat. 
These casinos are: the Grand Casino in the Grand Turkmen 
Hotel, the Florida Casino in the Florida Restaurant and the Ak 
Altyn Casino in the Ak Altyn Plaza Hotel.  As the largest of 
the three, the Grand Casino has 113 gaming tables and 150 slot 
and video poker machines.  Former director of the Grand 
Turkmen Hotel Ishan Faizullayev told Embassy economic 
assistant that the casinos were established in 1994 with the 
blessing of former President Niyazov.  Turkmen and foreign 
tourists reportedly frequented the casinos during the 1990s. 
Today, the three casinos appear to attract fewer and fewer 
gamblers. 
 
¶3.  (SBU) Faizullayev mentioned that Niyazov imposed 
maximum winnings of $5,000 per game.  He explained 
that during any given game, a person could only collect 
$5,000, even if he won $1 million from one slot machine 
pull.  Faizullayev added that President Berdimuhamedov has 
not changed this policy.  The State Committee for Tourism 
and Sports also receives some share of the casinos' profits. 
The percentage is unknown, as contracts, not gambling laws, 
regulate the percentage of profits to be paid to the 
government.  In addition, the Committee for Tourism and Sports 
reportedly earns between $300,000 to 500,000 per year from 
renting hotel space to the casinos. 
 
¶4.  (SBU) As for clientele, wealthy Turkmen, their family 
members, and some foreigners frequent the casinos.  For the 
children of some high-ranking officials, casinos are also 
popular hangouts.   Casino reps added that rich Iranians seem 
to "drain their pockets" in Turkmen casinos, as gambling is 
illegal in Iran and Ashgabat is a convenient destination.  In 
addition, the gaming tables have a minimum bet of $5, while 
slot and video poker machines take $1 minimum bets.  However, 
since the average Turkmen earns between $200 and $300 a month, 
gambling is cost prohibitive for most Turkmen. 
 
¶5.  (SBU) There are no gambling regulations or laws in 
Turkmenistan.  The GOTX approves a casino for operation by 
issuing a license.  Obtaining a gambling license, however, can 
take years.  At the same time, Berdimuhamedov has offered 
foreign investors the opportunity to open one major gambling 
complex in the Awaza national tourist zone on the Caspian 
coast (reftel).  Foreign investors have reportedly been told 
that the licensing process would be expedited for an Avaza 
gaming complex.  The Head of the Avaza Committee, who reports 
to the Turkmen President, recently stated that there will be 
one or two gambling facilities in Avaza, but no more, because 
President Berdimuhamedov does not want to detract from his 
goal of making Avaza a family-friendly vacation destination. 
 
¶6.  (SBU) COMMENT:  Unlike many former Soviet republics, 
Turkmenistan has few casinos.  These casinos cater to a small, 
elite crowd of rich and powerful Turkmen and well-off 
foreigners.  Given the president's and government's 
conservative and cautious social policies, it is doubtful that 
the gaming industry will ever expand beyond some secluded 
 
ASHGABAT 00000185  002.2 OF 002 
 
 
rooms in a few hotels.  END COMMENT. 
 
CURRAN