The Primorye gambling zone in the east of Russia is attracting significant investment, leading to speculation that it could become an Asia-Pacific hotspot.

Primorye

UP to US$2.2bn is being invested in the development of the gambling zone in the Primorye region of Russia, one of several gambling zones to be established in the country during the next several years.

This is according to Alexander Chkheidze, deputy head of the Primorsky Territory Development Corporation, an official operator of the project. He says that this is significantly higher than the initially planned figure of 55.5 billion roubles (US$1.8bn).

He has also stated that, so far, three largest investment contracts, which involve the building of casinos and related infrastructure within the territory of the Primorye zone, have been signed. 

Among the investors are The First Gambling Company of the East, one of Russia’s largest resort developers (together with Melco International Development), NagaCorp, the largest hotel, gaming and leisure operator in Cambodia, and Diamond Fortune Holdings Prime, a financial holding company owned by Russian and Asian investors.

In the case of The First Gambling Company of the East and Melco, currently the companies are continuing building a hotel, designed for 140 rooms and a casino, in the territory of the zone, which are scheduled for opening in May 2015.

According to the Primorye regional authorities, The First Gambling Company of the East is by 85 per cent owned by a group of investors from Hong Kong and Taiwan, headed by Lawrence Ho, a gambling tycoon from Macau who heads up Melco. Declared investments in the project are US$700m.

At the same time, in addition to Melco and The First Gambling Company of the East, the Cambodian NagaCorp will become another resident of the Primorye gambling zone.

According to the company’s recent statements, about US$350m will be invested in the building of hotels and casinos in the zone this year. This will the first investment of the company outside the Indochina region.

At the same time, according to the Primorye government, Diamond Fortune Holdings Prime will become a third investor in the gambling zone.

According to the company’s plans, up to US$914m will be invested in the Primorye territory by 2018. The first project involves the building of a 12-storey hotel with 100 rooms and 12 suites with casinos and entertainment complexes.

Read the full article in the February issue of InterGaming