Russia: Casino planned in Primorje

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Peter Brandt March 28, 2023

A new casino is to be built in the Russian region of Primorje by 2025. The project is initiated by the South Korean group “Plgen Holdings” (PH), who wants to manage the construction project together with the “Primorsky Development Corp” (PTDC). PH is the first company from South Korea to build a casino in the Russian special economy.

In Russia, gambling is actually prohibited by law, but there is an exception in the so -called special economic zones. ((© Egor Filin/Unsplash.com)

Budget of 21.72 million $

Russia is still besieging Ukraine with its troops. The war of attack has now prompted many companies worldwide to Complete activities in Russia and putting cooperation with Russian corporations on hold. The economy in the country suffers strongly from the isolation and the associated sanctions, since external capital in the form of investments hardly currently flows to russia. however, this could soon change due to the “plgen holdings” casino project. according to its russian partner ptdc, the south korean group is ready to Initial investment of around 21.72 million $ (approx. 2.5 billion rub) to do. the budget for the construction project could be significantly higher depending on the course of the work. the contractual details have already been clarified. according to igor trofimov, executive director of the ptdc, both ph and his company signed the construction contract at the beginning of the month. in the official press release, trofimov explains that the construction of the casino deepens the business relationship between ph and the ptdc:

“We look forward to welcoming new foreign investors. We are confident that the construction of the new casino is a good continuation of the fertile cooperation between South Korea and the Primoje region in the development of tourism and international relationships. ”Igor Trofimov, Executive Director der PTDC Official press release from the PTDC

Business in Primorje benefits

The construction of the casino will continue until the end of 2025. Many details have not yet been announced, but the project is a resort complex that is not exclusively gambling offers limit. guests would also find entertainment, culture and gastronomy in the resort. according to ph, however, the casino area of the project alone will bring enormous economic advantages for the primorje region. the south korean group is expecting Annual income of around 100 million rub. This corresponds to a sum of around 880,000 $ .

Primorje as a location The Primorje region is located in the far southeast of Russia directly on the Japanese Sea. Despite the decentralized location, Primorje is a very attractive location for foreign investors – especially for business people and companies from the Asian region. The reason: As a special economic zone, the region attracts with cheap tax rates. There is also a geographical proximity to the North Asian markets.

Gambling in Russia

Gambling is in Russia officially banned since 2009. president vladimir putin classifies the game with happiness more dangerous than alcoholism and has put a stop by law. the ban applies to both the state -based and digital gambling. despite the extensive ban, there is the opportunity to legally offer and operate gambling in russia. in the so-called special economic zones, which also includes the primorje region, special legislation applies to the Allow gambling under certain conditions. However, the exception only refers to the state -based casinos. The online segment is prohibited everywhere. There are a total of four special zones in Russia that include larger cities such as ASOW, Kaliningrad, Altaj and the Vladiwostok in Primorje.

Complex locations The special economic zones are at least 1,000 kilometers away from the capital Moscow and are in a rather unfavorable location. This is to ensure that the casinos do not experience a large number of visitors. In this way, the Russian government wants to prevent too many people in the country in with gambling.

The special economic zones in particular should attract foreign investors and companies, To generate capital. there are incentives, for example, tax breaks, an optimized infrastructure for industry and a lower bureaucracy. however, they come separate economic zones in Russia Not well on everywhere in the country. Especially when it comes to gambling. In the meantime, there were even plans to completely tailor the scasinos’ areas of gambling. So the cities should built based on the model of Las Vegas will. However, the criticism was so great that the plans were quickly rejected.