NORTH ASIA 16
RUSSIA
Primorye’s gaming hub dream edges towards reality The concept of a casino and entertainment hub in Russia’s Far East will take a further step towards fruition this summer with the expected opening of the Shambhala Casino.
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t will be the second integrated resort in Russia’s Primorye gambling zone, with a further property being developed by Nagacorp likely to open next year. The Shambhala casino is being built by businessman Maxim Smolentsev, who already operates a casino in Russia’s Azov City zone. So far, 3.5 billion rubles have been invested in the Shambhala resort out of a total projected cost of 8 billion rubles. The second stage will begin in 2022 and will feature a five-star hotel
GROSS GAMING REVENUE 2018
2019
Rolling chip turnover Mass table drop Slot handle
HK$15.2b HK$15.5b $751m 700m
$3.4b $2.8b (Source: Summit Ascent)
with 270 rooms, a spa area, a banquet hall and a conference hall. The main gaming hall will occupy an area of 5200 sq. m, which is more than other casinos in Russia. “In the short term, we see the Primorye IRC as a pan-Asian resort that attracts tourists from many countries of the world,” says Smolentsev, General Director of Shambhala CJSC. – We are waiting for guests from Japan, Cambodia, China and South Korea. Although for us, the
Ukraine legalises gambling Ukraine has passed a bill that will legalise all forms of gambling, although casinos will only be able to be located in hotels. The bill, which has been subject to multiple amendments, sets licence fees for online gambling at UAH30.7m ($1.1m), which will need to be paid when a licence is renewed every five years. Bookmakers’ licence fees were set at UAH70.8m while a flat fee UAH121.6m was set for casinos located in hotels in Ukraine’s capital Kyiv, with a UAH70.8m fee for casinos in hotels elsewhere. The bill stated that all operators and slot machine suppliers “must not be controlled by residents of an occupying state and/or the aggressor state in relation to Ukraine”.
Russia overhauls sports betting rules Russia has approved legislation that will significantly overhaul its sports betting industry, imposing tax on bets placed on overseas events and extending financial obligations to all market participants. The State Duma passed the bill in the second and third reading, according to law firm Dentons. The new rules pose limits on the types of events that can be wagered on, limiting activity to those held by Russian national sports federations and professional sports leagues. It also allows sports events held by international sports organizations, although Dentons says at present the definition of those organizations isn’t clear. Operators accepting bets on non-Russian sports will now be required to pay contributions to Russian sports federations, which amount to at least 5 percent of GGR every three months. An operator may have a license withdrawn if it fails to pay the relevant contributions within a three-month reporting period. Furthermore, it will no longer be possible to have a license on both sports betting and tote betting. The new rules also bring the first 14 sports betting licensees in line with the rest of the market.
Asia Gaming Briefings | August 2020
opportunity to provide a fabulous service to wealthy VIP clients is not all. We are not going to become a closed elite club for the elite from the first days. Our casino will be truly popular.” Smolentsev praised the local authorities for their support during the construction process, saying the licensing procedure had been fast and smooth. Primorye is seen as the most promising of Russia’s designated gambling zones due to its proximity to China and northern Asia. The
