The Primorye gambling zone in Russia is on the cusp of becoming a world-class gambling destination as its first hotel and casino prepares for its May 2015 opening.
Initial plans called for the Lawrence Ho-led First Gambling Company of the Far East‘s casino project to launch in March but Governor Vladimir Miklushevsky announced in December that the opening would be postponed two months.
The launch is widely seen as a catalyst for more investors to consider joining the new gambling zone, which has already secured investments from a number of world-class casino operators, including Cambodia’s NagaCorp.
Primorye has so far attracted significantly more investment than Russia’s other designated gambling zones. In January, Primorye officials said the region had received investment pledges amounting to $2.2 billion, including $1.4 billion from Ho’s Melco International Development and NagaCorp.
According to a member of the Federation Council, the upper chamber of the Russian parliament, the Altay region has generated close to 7 billion rubles in investments, roughly $114.2 million based on current exchange rates.
Meanwhile, just south of Russia is the “partially recognized” state of South Ossetia, whose parliament passed a law banning all types of gambling activities within its borders, largely due to a seeming lack of interest from residents. The revenue numbers for 2014 appear to back up this move as the state generated only 106,000 rubles from gambling for the entire year. That’s around $1,730 based on current rates.
South Ossetia’s ban includes all slot machines and sports betting shops. Failure to comply with the new law could result in an administrative penalty and fines starting at 500,000 rubles ($8,000).
