The territory planned for Azov City gambling zone in southern Russia may move to a military unit in case the Kremlin decides to relocate the zone to the Black Sea coast, Krasnodar Deputy Governor Alexei Agafonov said.

The Russian government is currently considering moving one of its special zones for legal gambling, following the failure of Azov City in southern Russia due to a lack of infrastructure.

The Rostov Region in southern Russia will not give up its special gambling zone without a fight, the region's economics minister said after it emerged that the Kremlin is considering the possible relocation.

A ban on gambling, except in four special zones in remote parts of Russia, came into force in July 2009. The four areas where gaming is permitted are Azov City on the borders of the Krasnodar Territory and Rostov Region, a zone in the Altai Mountains, Amber in Russia's Kaliningrad exclave and a zone in the Primorye Region in Russia's Far East.

Gleb Khor, deputy of the lower house of the Russian parliament, the State Duma, has proposed an amendment to the gambling law that envisages removing the Rostov Region from the list of approved gaming areas.

In addition, his amendment proposes suspending the ban on gambling for 10 years from the date it was introduced. The amendment has already been approved by the Duma Economic Policy Committee.

"The Rostov regional authorities will do all they can not to allow the amendment to be approved," Vladimir Bartenyev said.

Earlier Agafonov proposed moving Azov City to a "free territory" near the Black Sea resort of Anapa in Krasnodar region, citing economic benefits. It would be a new "family type" resort, he said.

He said investors who had already sunk their cash in Azov City in the Rostov Region would be compensated.

After some initial shock, the majority of investors approved the proposal unanimously, according to the Royal Time Company, one of the key investors in Azov City.

Krasnodar Governor Alexander Tkachyov proposed the move in a letter to President Dmitry Medvedev, business daily Vedomosti said, adding that Medvedev had instructed the government to study the proposal.

Vedomosti said no decision had been made on the Krasnodar governor's proposals. Azov City is the closest to completion of the four approved gaming zones, with investors having already sunk $10 million into casinos there.

ROSTOV-ON-DON, September 4 (RIA Novosti)