Yantarnaya Gambling Zone: History, Taxation and Plans for the Future
Yantarnaya is one of the four official gambling zones functioning in the Russian Federation. The administrative-territorial object was formed on instructions of the Russian Government in 2008. Check more details concerning Kaliningrad gambling zone development, active objects and taxation in the article below.
Yantarnaya tourist and recreation gambling zone is located in the Kaliningrad region, by the Baltic Seacoast. Firstly, the integrated resort allocated the area of 619 hectares for integrative resort development, thus it was reduced five times, which is 995.1 thousand square meters.
Initially, the authorities of the Kaliningrad region introduced a plan for the gambling zone development, including 15 gambling facilities, more than 20 hotels, sports fields, shops, etc. Investors were expected not only to build business objects, but also to develop infrastructure. Due to the quite ambitious project, companies were in no hurry to invest in its implementation.
In order to attract investors, local authorities built highways and announced the allocation of funds for the welfare of the territories and infrastructure creation.
Gambling Zone Activities
Today, the gambling zone of the Kaliningrad region includes Magic Crystal and Sobranie.
Magic Crystal, the first implemented gambling facility in Yantarnaya, opened in April 2016, 8 years after the formation of the administrative-territorial object. Magic Crystal consists of the halls with slot machines and a bar for visitors. Nevelend LLC is both the owner and the investor having spent approximately 115 million rubles for complex construction.
gambling zone object is Sobranie casino that started running in February 2017. Its total area is 18 thousand square meters consisting of several halls, the stage, restaurants and Offshore bar. Nowadays, visitors are offered with a wide range of slot machines and table games.
Taxation and Investments
In 2014, following the results of the competitive selection, Siberian Trading Company CJSC became the developer of the gambling zone. It is a subsidiary of Kazan Royal Time Group LLC, which became the first investor of Yantarnaya. However, in April 2016, the holding company ceased participation in investment projects of the integrated resort. In February 2018, the court declared it bankrupt.
Today, Uni Gaming Company LLC acts as a Sobranie casino representative.
In general, at least 45 billion rubles will be allocated to the creation of a gambling zone. Active campaign is being led in order to attract companies willing to participate in the construction of hotels, catering establishments and other objects.
Like any other business representative, participants of the gambling market pay taxes. According to the Ministry of Finance of the Kaliningrad region, Yantarnaya gambling facilities payed 58 million rubles taxation to the regional budget in 2017, and almost 60 million rubles over the three quarters of 2018.
Monthly gambling business taxes have doubled in the Kaliningrad region since 2019. The regional authorities expect the regional budget to receive additional 80 million rubles due to such measures. The first reports of the current year show a positive trend in this issue. Only in January, operators transferred more than 10 million rubles to region budget.
Following 2019, the regional budget is going to be replenished with 131 million rubles due to Magic Crystal and Sobranie engagement.
Yantarnaya gambling zone is planned to be developed till 2029 occurring in several stages. The resort will house not only gambling facilities, but also objects of a different type intended for family vacation and entertainment.
At the end of 2018, the authorities of the Kaliningrad region announced plans to develop the infrastructure of the gambling zone occurring next 7 years.
Owing to the integrated resort, Kaliningrad region is planning to attract up to 2 million tourists annually by 2020.
It is expected that the number of Yantarnaya guests will increase with the beginning of the international maritime terminal located in Pionersky receiving up to 250 thousand cruising tourists per year.
What is more, the development of the gambling zone will have a positive impact on the labor market of the Kaliningrad region through the creation of 19 thousand work places in Yantarnaya gambling zone.