Russian developers and local governments are doubling down on their gaming pivot, with the nation’s Far Eastern gambling zone green-lighting plans to build a new $273 million casino complex.
The complex will occupy 75,000 sqm and feature an 800-room, five-star hotel, the Russian news agency Interfax reported.
The developer, Samson Group, will also help renovate a nearby industrial park as part of its deal with the Primorsky Krai government.
Primorsky Krai is home to the Primorye gambling zone, one of five such zones located nationwide. Moscow has already approved a sixth zone in Siberia. Work on a new casino in this zone has already begun, and is being funded by the financial giant Sberbank.
The Primorsky Krai government said it had finalized its deal with Samson Group on the sidelines of the St. Petersburg International Economic Forum.
Russian Far Eastern Gambling Zone: New Casinos Set to Open
“Primorye needs high-quality tourism infrastructure,” said Samson Group CEO Kristina Zakharchenko. “Working on these projects will allow us to contribute to the comprehensive development of the Primorye economy, increase tourism, and create over 1,500 jobs.”
The parties said they would build the new complex on an 8.9-hectare plot. But they did not reveal the exact location of this plot. They did not comment on a possible opening date.
Officials in Primorsky Krai said Samson Group’s work on the Bolshoy Kamen Industrial Park would help develop tourism infrastructure in the region.
The Primorye gambling zone is part of the Muravyina Bay tourist cluster. Two casinos are already operating in the cluster, namely the Tigre de Cristal and Shambala.
However, plans are underway to add another, Chinese-funded casino. Last year, a Jiangsu Province-based firm struck a $194 million development deal with Primorsky Krai and its Development Corporation.
Samson Group called Primorye “one of the largest tourism projects in the [Russian] Far East.”
Russia’s Casino Pivot
The Primorye development comes amid a flurry of activity in the gambling zones. Experts have claimed that the new Sberbank-backed resort will “be on par with Macao, and much better than those in neighboring Altai Krai.”
The new, Altai Republic-based resort is the brainchild of Herman Gref, the Sberbank chief and a former government minister.
Gref is one of Russia’s most powerful, wealthy, and influential business leaders.
The operator of the Shambala chain of casinos is also set to renovate its existing gambling facility in Kaliningrad Oblast’s Yantarnaya gambling zone.
The plans will see Shambala add a new five-story building with expanded casino floor space and a top-end hotel.
Kaliningrad Plans
Samson Group is also looking to expand its presence in Kaliningrad, with plans to spend around $543 million to help build the White Dune integrated resort near the village of Povarovka.
The firm will team up with other developers, such as the Lider Group, to build a community and business center and hotels totaling at least 3,200 rooms.
Kaliningrad officials say they expect White Dune to attract around 1.1 million tourists per year.
The Russian media outlet RBC reported that Kaliningrad authorities plan to spend a total of 16 billion rubles from the state budget on White Dune development over the next three years.
Russian industry experts say Kaliningrad and Sochi developments primarily target domestic customers, while casinos in the Russian Far East are designed to attract Chinese tourists.
Russia’s gambling pivot does not end with land-based casinos, however. The Ministry of Finance has unveiled plans to legalize and tax online casinos.
However, the ministry’s proposal has proved controversial. Opponents include opposition lawmakers and Orthodox Church leaders.
