NagaCorp Suspends Vladivostok Casino Project Indefinitely Due to “Various Uncertainties” in Russia

March 8, 2022 Cambodia Casino & Hotel

Cambodian casino company NagaCorp has suspended the development of its casino resort project near Vladivostok, Russia. Although the operator cited “various uncertainties” for its decision and did not directly point out Russia’s invasion of Ukraine or the resulting business and financial sanctions unveiled by many governments, analysts believe this is exactly what has provoked the gambling company to do so.

Last week, NagaCorp issued a filing with the Hong Kong Stock Exchange to make its decision public. The gambling operator invoked a force majeure clause that was included in its investment agreement for the Vladivostok casino project with the Russian authorities. At the time, NagaCorp said that the development of the project would be suspended indefinitely until the circumstance that had pushed the company towards such a decision is clearer.

The aforementioned sanctions are likely not the only difficulties faced by the Vladivostok casino project, which was set to take advantage of a location in close proximity to the border between Russia and China, and only a short flight away from Japan and South Korea. Currently, casino gambling is illegal in mainland China and Japan and remains largely restricted to foreign visitors of South Korea.

The travel restrictions associated with the Covid-19 pandemic have already made things difficult for Tigre de Cristal and Shambala,
the two already existing casinos in the special gambling zone where NagaCorp was planning to establish its Vladivostok casino.