No compensation for Azov operators
The Russian government has ordered that the Azov City designated gaming zone must close by the end of the year. At the same time, officials have announced that a new casino will open in Sochi in the new year.
According to CalvinAyre.com, on October 27 an edict signed by Prime Minister Dmitry Medvedev confirmed the “liquidation” of the Azov City gaming zone, which includes three casinos, effective December 31. The government first announced the plan to close the casinos in 2015.
Making matters worse for Azov City operators, the zone was also exempted from legislation enacted in the spring to compensate operators if the government put an end to one of the country’s gaming zones.
Meanwhile, the Krasnaya Polyana zone’s boundaries have been expanded to include Sochi, site of the 2014 Winter Olympics, to help the city maintain and build on its tourism business. Russian affiliate News of Gambling quoted Dmitry Anfinogenov, deputy general manager of Casino Sochi in the Gorky Gorod ski resort, who told local media that he plans to open a casino called Boomerang in the adjacent Rosa Khutor resort in January.
Just one other gaming hall in active in the region, the Bonus slots hall that opened in December 2017. The two venues drew about 55,000 customers in the August, exceeding total customer traffic at all three Azov City casinos by more than 11,000.
The most successful of Russia’s gaming zones is in Primorye Integrated Entertainment Zone near Vladivostok in the Russian Far East. The PIEZ occupies 619 hectares (1,530 acres), and about a dozen properties could comprise Phase I of the zone’s development; currently, however, only one is open, Tigre de Cristal, operated by Summit Ascent Holdings, which debuted in October 2015. According to GGRAsia, Igor Trofimov, director general of the Primorsky Krai Development Corp., said all six available parcels in the region should be leased by the end of the year.
“We are just waiting for some documents, so that we move forward with the payment and finalize the investment agreement and lease contract,” he said. “The announcement should be made shortly,” he added.
Among the developments now under construction is NagaCorp’s Naga Vladivostok integrated resort. Phase I of the IR, with a casino, hotel and conference hall, should open sometime in 2020. Phase II will be complete two years later.
Two other developments are now in the works, including Diamond Fortune Holdings’ Selena resort, also expected to open in 2020. The third project will be developed in the zone by CJSC Shambala.
Phase I of Primorye IEZ should be in operation by 2025, with the companies expected to invest a total of at least US$2.7 billion, according to information provided by the PDC. Investors have committed so far US$2.10 billion for the development of seven casino resorts.
“There are three key pillars to develop the market,” said Trofimov. “Increasing the influx of tourists, developing infrastructure, and introducing the right legislation. We’ve seen some encouraging policies, like the simplified visa system for 18 countries and improved accessibility via air and land.”
