On April 20, the Primorye government passed an amendment that will provide a six-month tax relief extension for gambling operators in its zone.
According to Asia Gaming Brief, the relief was first introduced in mid-2020 as a way to help casino operators survive the pandemic. The plan was extended amid a “worsening economic situation” due to global sanctions against Russia, a result of the war on Ukraine, said Galust Akhoyan, of the Legislative Assembly of Primorye.
In March, Summit Ascent Holdings, operator of Tigre de Cristal in the Primorye Economic Zone, said there had been no immediate impact from the sanction, as the property relied on local patrons. But the company added that it might have to “adjust our operations to the reality of a volatile business environment and try to find ways to do business within the new constraints we may be facing.”
Meanwhile, casinos including Tigre de Cristal and Shambala will pay reduced taxes on gaming table and slot machine revenue from April through September. Primorye estimates the reduced taxes will amount to around RUB39.8 million (US$481,000 at the current exchange rate), AGB reported.
In related news, Summit Ascent said that its integrated resort currently under construction in Manila’s Entertainment City precinct will provide new opportunities to tap into the lucrative Philippine gaming market.
In March, Summit Ascent announced it was delaying further development of Tigre de Cristal until 2025 at the earliest in response to geopolitical conflict between Russia and Ukraine. The company also said at the time that local financiers were sustaining the project for the time being, and that there was “no imminent need” for the company to allocate more funds to the Russian government.
According to the 2021 report, the change of focus for the company was made possible by their investment of about $229.2 million worth of convertible bonds across 2020 and 2021 from Suntrust Home Developers Inc., a Philippine-based development firm.
Both Summit and Suntrust are owned by Suncity Group Holdings Ltd., which is based in China.
Summit Ascent called the Manila project a “fast pass” that will allow them to quickly gain momentum in the Philippine market. The company said it was excited to enter the region, as it is exhibiting “a decade’s track record of double-digit gaming revenue growth.”
When the $1 billion integrated resort project is eventually completed, it is expected to garner success rather quickly, given that the four other Manila resorts all did relatively well over the last two years despite Covid-19 hiccups.
