Russia Hoping To Lure Investors To Gambling Zone

In 2009, gambling in Russia became illegal outside of the country’s four designated but far-flung gambling zones located in the Baltic, Siberia, Far East, and southern Russia.
However, the Russian governments attempts to create these casino gambling zones has so far proved unsuccessful, with just RUB100m ($3.13m) in tax revenues having been collected from an investment of RUB1.4bn ($44.7m) over the past three years.
Now the country is hoping to cash in on the Asian casino boom after announcing that state-owned Nash Dom Primorye was seeking private investors to develop casinos in Vladivostok, which is around 300 miles from the Chinese border. Also, with just a few hours flight necessary from Beijing, Seoul, South Korea, and Tokyo, the Russian government is hoping the area may one day generate between $2 and $7 billion in revenue annually, with Marina Lomakina, general director of Nash Dom Primorye commenting:
“Over the next five years, the Russian Federation will continue to have a strong strategic interest in the economic development of the Far East region. Our view is that the tourism sector is a strategic economic opportunity that has yet to be fully developed.”
Part of the lure for Asian tourists may be the attraction of visiting a nearby but culturally different location, with the area aiming to offer all round entertainment for visitors and not just casino gambling. Investors are invited to submit their tenders over a 60 day period starting June with the government evaluating company pitches in October.
Commenting on the recent announcement, Bo Bernhard from the International Gaming Institute at Nevada University, said: “We have no north Asia port for gambling. For a long time the debate has been, will it be Korea or Japan and all of a sudden Russia is in play. It’s an interesting opportunity.”