Russian Govt Recover Primorsky Investment Through Gaming Tax

The Primorsky Territory of Russia has already recovered the cash it spent to help get its gaming zone up and running.

Primorsky Territory Deputy Prime Minister Konstantin Shestakov pointed out that the level of gaming tax charged by the two current casinos, Tigre de Cristal and Shambala, has already paid back the US$25.5 million invested by the local government on facilities with US$26.5 million in gaming tax.

Mr. Shestakov declared: “Based on the results of the project development in 2020, the most significant event was the commissioning of the second facility on the territory of the gambling zone – the Shambala complex. Thanks to this, the total number of people employed within the framework of the gambling zone project was almost 1,500, not counting the jobs created in related industries.

“For the entire period since the beginning of the implementation of the project Primorye, the amount of tax and other deductions will be more than RUB2bn rubles by the end of 2021, of which more than RUB1.6bn goes directly to the budget of Primorye.”

The Deputy PM continued: “Now the main task facing the Government of the region and the Krai Development Corporation is to open new land plots for our investors.

“Even in this difficult time, companies are ready to continue investing in Primorye. The existing tourist facilities are developing, new investors from Korea are beginning the construction of a golf course, and negotiations are underway with potential investors on the construction of hotels with casinos.

“All of this contributes to the formation of a strong anchor for other tourist and entertainment facilities that will be associated with the Primorsky Territory. The creation of casino resorts is also an advantage in terms of organizing a system of package tours for our guests from the Asia-Pacific region.”

Tigre de Cristal, the first casino in the city, opened in 2015, with the second Shambala Casino opening in the summer of last year. Diamond Fortune and NagaCorp are currently constructing two casinos. But the expectation of the government is that 11 more will follow.