Casino zone has created thousands of jobs
The government of the Primorsky Krai casino zone near Vladivostok will not raise taxes on gaming establishments as previously considered.
“In order to provide stable business conditions, the regional administration suggested not to increase these rates,” said Tatyana Kazantseva, vice governor for economic and financial matters, in a press release issued by the Primorsky Krai Development Corp.
Primorsky Krai is a government-owned company overseeing the Primorye Integrated Entertainment Zone, a casino development area 31 miles from the port city of Vladivostok.
Last year current and pending casino operators got up in arms about reports that Russian federal authorities OK’d the tax hikes. The monthly payable levy per gaming table was to range from a minimum of RUB50,000 (US$875) and a maximum of RUB250,000 (US$4,380). The levy for gaming machines was to range between RUB3,000 and RUB15,000, reported GGRAsia.
A November note from Union Gaming Securities Asia Ltd. said the new taxes could reduce 2018 EBITDA for Summit Ascent Holdings’ Tigre de Cristal—the only casino resort now open in the vicinity—by as much as 6 percent. Last year Melco Resorts & Entertainment chief Lawrence Ho stepped down as chairman and non-executive director of Summit Ascent and also sold off his 17.4 percent stake in the firm.
Kazantseva said businesses in the casino zone have created 1,000 direct jobs and 4,000 additional jobs, and reaped a tax windfall for the region of approximately RUB322 million (US$5.6 million) per year.
Two other gaming projects are now under construction in the zone: Selena, from Diamond Fortune Holdings Ltd., and Naga Vladivostok, from Hong Kong-listed NagaCorp Ltd. Both are due to open in 2019.
