25 августа 2020

Vera Shcherbina: gambling zone brings 200 million rubles in taxes

Vera Shcherbina: gambling zone brings 200 million rubles in taxes

Vera Shcherbina, the Prime Minister of the Primorsky Region and Konstantin Shestakov, her deputy, visited the Primorye gambling zone on Wednesday, August 5. The construction of new entertainment and infrastructure facilities is well underway.

NagaCorp Ltd. (Cambodia), Summit Ascent Holdings Ltd / SunCity Group Holdings Ltd (China), Shambala CJSC (Russia) and other large Russian and international investors are building the integrated entertainment resort. The investments from these companies alone since the projects start amounted to 19 bln rub.

The Representatives of the Government of the Primorsky Region inspected the integrated entertainment resort facilities, including the engineering and transport infrastructure and the new Shambala casino, which is to be open in the very near future.

“The gambling zone project is large-scale, it will develop the Primorye Economy by having 20,000 new highly productive jobs, tax revenues to the budget and, of course, impressive modern entertainment facilities,” Vera Shcherbina said.

After the Shambala entertainment complex launching, the tax flow from the gambling to the regional budget will be doubled.

“Last year about 100 mln rubles came to the budget of the Primorsky Region, this year it is to be more than 200 mln. We expect by 2025 the amount of tax revenues will be about 2.5 bln rubles, and after the project reaches full capacity, in the distant future, it will be about 4.5 bln,” Vera Shcherbina said.

The Prime Minister also notes that the project is important due to the work with federal authorities. In total, the construction in the gambling zone "Primorye" requires almost 5.6 bln rubles, more than 64% is provided by the Federal Target Program, 24.6% - by the regional budget, 9.3% - own funds of "Primorsky Krai Development Corporation" JSC.

Konstantin Shestakov, the Deputy Prime Minister of the Primorsky Region, also noted that it is important for Russian and foreign investors that the authorities are ready to be responsible partners and fulfill their obligations.

“All the tasks authorities faced with the gambling zone project at this stage - water supply, sewerage, electricity - have been completed in many areas in full. Road infrastructure was completed in more than 85%. We are confident that by the time the new casino opens, all the facilities Primorsky Region was responsible for will be ready,” Konstantin Shestakov said.

According to Maxim Smolentsev, the main investor of the new casino, General Director of Shambala CJSC, the gambling zone in Primorye is an advanced long-term project.

“The construction site cost 500 mln rubles. Now, probably, no one will believe that there was a high hill on the site of the casino. Such a project was not worth starting if you live one day. But we have a development plan for the next 10 years. We see the Primorye gambling zone as a large resort that attracts tourists from many countries of the world,” he told.

Recall that the Primorye gambling zone project includes 12 hotel and entertainment facilities with restaurants and bars, landscaping, a golf course, an entertainment park, a water park, a diving club and other facilities for family and sports recreation. Specialists from Singapore and recognized consultants and operators of the global gambling and entertainment industry helped to develop the project.

7.4 mln tourists per year are expected to visit the resort in 2025, with a further increase to15.3 mln per year at a peak. Also the share of tourists from Southeast Asia is expected to increase to 70-80%.