Slowdown could affect expansion plans
Lawrence Ho’s Tigre de Cristal casino in the Russian port city of Vladivostok has been forced to trim its inventory of gaming tables and shut down its poker rooms due to increased competition from illegal gambling operators, reports CalvinAyre.com.
Tigre de Cristal officially opened in November 2015, the first of four gaming resorts planned for the Primorye gaming zone. Though VIP gaming has been strong at the property, its other gaming options have struggled.
In an op-ed column published in Betting Business Russia, Executive Director Craig Ballantyne of operator G1 Entertainment said illegal gambling is rampant in the Primorye region, to the detriment of legal operations. The property that opened with 651 slot machines now has fewer than 400, he said. From 67 original gaming tables, it has cut back to 55, and all 10 Texas Hold ’em tables have been removed.
“Illegal gambling is widespread in Primorsky Krai,” Ballantyne wrote. “Such institutions, especially poker clubs, create a negative impact on legal business, despite all the marketing efforts undertaken by us. I note that the presence of approximately eight to nine illegal poker clubs in Vladivostok confirms the overall demand for these services.”
He said these clubs advertise openly on social media, “something that should be of great concern to local law enforcement and tax authorities, especially taking into account the plans of the Russian government to develop Russia’s Far East by attracting foreign investment, stimulating and supporting business.
“In order for any business to bring income to its shareholders, including the state, they need to respond attentively and quickly to market factors,” he warned. “But in conditions when the legal business is compelled to compete with underground gambling establishments, the state as the main shareholder should share the burden of care with the licensed operators.”
