Two Azov casinos will close in 2018
Russian casino magnate Maxim Smolentsev, who runs two casinos in the country’s Azov zone, says he would be interested in opening a new casino in the recently established Crimea gaming zone if he’s sure he will not then be forced to close it.
According to the Asia Gaming Brief, 2009 legislation banned casino gaming in Russia outside four gaming zones: the Primorsky Krai in the Russian Far East; the Kaliningrad Oblast on the Baltic Sea; Central Asia’s Altai Krai; and the area around Azov.
But the opening of yet another zone nearby Krasnaya Polyana area around Sochi on the Black Sea reportedly will force casinos in Azov to close before the end of 2018, the World Casino Directory reports.
“I wrote a letter asking to rent facilities in Sochi but received no reply,” Smolentsev told Kommersant. “The same situation happened with the gambling zone in Anapa. We were not even allowed to participate in the auction.”
David Baghiyan, deputy marketing director for Smolentsev’s Azov operations, reportedly told Kommersant that he had yet to receive any guidelines from Moscow regarding the amount his employer would be expected to pay in order to open a new casino in Crimea. “We are ready to participate in many projects but the main thing is to know the exact conditions; they must be clear and transparent,” Baghiyan said.
“In Crimea, it is still unclear what the site looks like, what is the situation with communications, infrastructure and so on,” he said. “Investments in the opening of Azov amounted to $176.82 million if we don’t count the state money—it’s difficult to understand how much one has to invest in the gambling zone in Crimea, and if there are roads, power capacity or gas as this can significantly reduce costs.”
Baghiyan said Smolentsev’s Azov casinos paid $3.53 million in taxes last year and a total of $35.35 million in the two businesses, but is now unlikely to recoup his investment.
