Primorye gambling zone: New facilities, investments and plans for the future
Primorye is the official gambling zone, located in Primorsky Kray. This administrative-territorial object was formed on instructions of the Russian Government in 2009. Check more details concerning this Far Eastern gambling zone and its development in the article below.
Note! According to the art. 171.2 of CC RF and art. 14.1.1 AOC RF, gambling organization and its conduction, using information and communication networks (including the Internet) outside of the gambling zones is forbidden. This material is only informational and analytical, without any calls for action or violation of law.
Primorye integrated entertainment resort is located in Muravyinaya Bay, 50 km away from Vladivostok with general area of 619 hectares. International investors, including Chinese, Cambodian and Japanese, build hotels, casinos and a number of non-gambling objects here. Primorsky Kray Development Corporation creates engineering infrastructure here.
Tigre de Cristal entertainment complex, the first and the only operating gambling object in Primorye, has been greeting its visitors since November 2015. Currently it provides 1 000 people with work. Approximately $200 million were invested into its building with the help of inward investments, becoming the largest integrated complex in the Far East.
According to Firich Enterprises Co. Ltd, the net profit of Tigre de Cristal accounted for $6 million during the first 9 months of 2018 ($4 million in 2017). During this period, 238 thousand people have stayed in the hotel, which is 19 thousand more than in 2017. Most guests are citizens of China, South Korea and Japan. According to the Primorye Tourism Department, more than 400 thousand people have stayed in the complex.
In 2018, Tigre de Cristal was honored by the World Travel Awards international association in the “Leading Russian Resort” nomination.
Financial aspect: taxes and investments
Primorsky Kray administration has stated that the residents of Primorye IEZ payed to the stayed budget more than 650 million rubles, including 480 million rubles to regional treasury during 2015-2018. It is believed that by the time the resort starts functioning at full capacity, Primorsky Kray will earn $7 billion annually, 3 billion of which will be the gambling tax.
Different sources state that the amount of money invested into Primorye IEZ will be varied from 107 billion to 117 billion rubles. According to Primorsky Krai Development Corporation web portal, the resort investors are:
- G1 Entertainment LLC with the investments of $700 million;
- Primorsky Entertainment Resort City LLC with the investments of $350 million;
- Dimond Fortune Holdings Prim LLC with the investments of $378 million;
- Shambala LTD with the investments of $133 million;
- Prim Golden Gate LLC with the investments of $321 million;
- Gaming Group Primorye LLC with the investments of $215 million.
Companies based all over the world are making plans of building objects on the territory of Primorye resort. They are interested not only in casino construction, but also in non-gambling infrastructure. The major purpose is the place to relax that will attract tourists with different interests and incomes, including youth and married couples.
Russian gambling operator Shambala became the new Primorye resident in the spring of 2018. The company was granted with 2 parcels of land for the complex construction with a hotel, a casino, restaurants, a stage, a beauty spa, a night club, a bar zone and a grand buffet. The project estimated value is at least 8 billion rubles.
Last summer, K International Inccompany (South Korea) declared its intention to build the new entertainment complex with a gambling club, trading platforms, a lounge area and a stage. The total amount of investments is $300 million.
In January of 2019, another South Korean company Dongnam Industry Co. Ltd signed the agreement for building of the golf course. The project will cost 2 billion rubles. Owing to the VIP infrastructure development, high-income tourists are going to be attracted to the gambling zone.
Simple Create Co. Ltd, a Japanese company, has also joined the list of investors in the current year, becoming the partner of Dimond Fortune Holdings Prim LLC – a company that is building Imperial complex, consisting of the hotel with a casino, a beauty spa and a night club.
In general, 12 complexes will be constructed on Primorye gambling zone territory. There will be hotels, casinos, a water park, shops, exhibition platforms, parks, entertainment centers, a ski slope, a yacht club, beaches, recreative territory, restaurants, bars. In terms of the project realization, there will be more than 20 thousand work places. Integrated entertainment complex is expected to increase the number of Primorye tourists up to 1.2 million people per year.
Today, the gambling zone consists of 4 entertainment complexes: Sun, Imperial, Naga Vladivostok and Shambala. The last 3 are scheduled for opening in 2020.
2 parcels of land are available now, however, they are expected to be rented in 2019, followed by the active road building and development of non-gaming area and engineering infrastructure.