Primorsky Krai lowers casino tax rates in Russia

The tax rates on casino resorts in the Primorye Entertainment Zone have been decreased by more than 25% by the Primorsky Krai administration in Russia. The modifications include a reduction in the monthly levy on each slot machine from RUB7,500 (US$76) to RUB5,500 (US$55) and on each gaming table from RUB125,000 (US$1,260) to RUB85,000 (US$857). These changes were adopted during a meeting of the Legislative Assembly of Primorye. This results in a decrease of 26.7% in the monthly tax on slot machines and a reduction of 32% in the monthly tax on table games.

Because of the economic sanctions placed on Russia as a consequence of the situation in Ukraine, less tourists are coming to the gambling zones, which has a negative impact on the viability of the casinos there. As the economy stabilises and domestic tourism rises, the government plans to gradually revert to the former taxes rates.

Along with the tax adjustments, the Primorsky Krai Development Corporation reported a 43% year-over-year rise in Primorye Entertainment Zone visitors in the first half of 2023, with 87% of them being Russian citizens travelling domestically. The percentage of international visitors fell to 13%, with Uzbekistan serving as the primary source market. LESS THAN 4% OF THE TOTAL VISITORS CAME FROM CHINA.

Two casinos may be found at the Primorye Entertainment Zone: Tigre de Cristal opened in 2015 and Shambala launched in 2020. While NagaCorp’s project was set to begin in March 2022, another casino project by Asia-Invest Group LLC was set to begin in September but was postponed indefinitely owing to unpredictability surrounding the crisis in Ukraine.

Original story by: IAG