Russia bans all gambling and shuts casinos

"I'm upset but I guess I'll have a little rest and re-visit my job situation in August," said Elena, a slot machine operator who has worked in the gaming business for five years.

Each year gaming brought in up to $7 billion and paid $1 billion in tax, a gap the industry says will cause the state a budget headache.

The development replacement zones -- in southern Krasnodar, the Baltic enclave of Kaliningrad, east Siberia's Altai region and the Far East -- require investment of up to $40 billion and have not been built.

"The zones have no roads, water or electricity. We fulfilled the law by shutting, the government did not fulfill it as the zones are not ready yet," said casino director Boyev.

The industry has raised eyebrows at government guarantees of work in restaurants and shopping centers that are to replace casinos when unemployment in Russia has hit an eight-year high.

But some addicted gamblers thought the ban might help them.

"Maybe this is all a good thing. I'm a family man and I come here every day and lose all my money. I'll be happy to see them go," said a 40-year-old Muscovite near the flashy Shangri-La casino in the city center.

(Additional reporting and writing by Amie Ferris-Rotman, edited by Richard Meares)