Can they do enough business?
Since its grand opening November 11, Lawrence Ho’s Tigre de Cristal casino resort in Russia’s Far East has proven a hit among Asian gamblers. One report predicted the region can “surpass Las Vegas and even possibly Macau.”
While the reviews have been uniformly positive, some industry observers are sounding a cautious note about the potential of the Primorye Integrated Entertainment Zone near Vladivostok, which plans a total of eight casinos.
According to the World Casino News, the first casino is “a canary in the coal mine, guinea pig, or roaring tiger depending on your perspective. If this venture does not succeed, billions of dollars of investments in the area could be stymied or even halted.”
The report said the success of the gambling zone “will depend a lot on the government providing the right environment, infrastructure and support.”
The Economist pointed out “bureaucratic hassles” that delayed the launch of Ho’s lavish property, which it described as resembling “a black glass and steel spacecraft that landed in the Siberian forest.”
“Even with the delay, the local government failed to revamp the main road from the airport in time for the grand opening, much to the chagrin of casino staff,” the publication reported.
The Siberian Times noted that though 80 percent of gaming revenue to date has come from foreigners—especially visitors from China, Japan and South Korea— 80 percent of the casino’s patrons are Russians. If the success of the PIEZ depends on Asian gamblers, a softer Chinese economy could be a cause for concern, as well as the ongoing clampdown on efforts to attract Chinese gamblers to foreign destinations.
“It is the rising economy of Asia the pilot casino is really counting on for success,” reported WCD. “In their own country, Chinese are only allowed to gamble in the special administrative district of Macao—a greater distance from most Chinese population centers where the middle class is still on the rise.”
At the opening ceremony last year, Vice Governor Sergey Nehaev of the Primorye Region said Tigre de Cristal “has made history by being the first integrated casino to open in what will be a unique entertainment zone. In a couple of years we expect to have more casinos, more theme parks, water parks, hotels and integrated resorts.”
Work is now under way on three other properties in the PIEZ, one of several economic development zones designated by the government in 2009.
Ho’s $200 million first phase eventually will lead to a $500 million Phase 2, with “significantly more” non-gaming amenities, set to be complete in 2018.
