The economy of the Russian Federation is currently facing many difficulties due to the recent commercial exoduses and sanctions imposed as a result of the country’s military invasion of Ukraine. However, the situation does not seem to bother a South Korean operator, which is ready to turn a blind eye to the situation and establish a casino resort in the Russian Far East.
A large number of international brands operating in various economic sectors have left the Russian market as a sanction of the country’s military invasion of Ukraine.
The invasion, which started on February 24th, has so far affected the plans of NagaCorp to move forward with the pursuit of its new integrated casino resort (IR) in Russia. However, the same does not apply to Plgen Holdings Co Ltd, as the South Korea-based gambling operator has made a commitment for a major investment in the country to establish a new IR in the Russian Far East, where Primorsky Krai, informally known as Primorye, is. Apparently, the operator does not mind the negative attention that is being currently received by Russia.
Plgen Holdings is the first South Korean gambling operator that has made a commitment to establish a casino operation in Primorye. The company has announced a decision to make an investment worth $23.4 million to build the first phase of a massive integrated casino resort in Russia. The gambling, hospitality and entertainment property is set to be hosted on 25 hectares in the country’s gambling zone.
The Primorye Gambling Zone Does Not Live Up to Expectations
As GGRAsia revealed, the integrated casino resort project will initially include not only a casino but also a hotel featuring more than 100 rooms. The first phase of the project is set to start operation before the end of 2025. The second phase of the IR will include additional amenities, such as a theme park and various other attractions. The company has still not announced any timeline for the second part of the IR development.
Reportedly, Plgen Holdings has been in talks over the potential IR development in Primorye with local authorities since some time in 2021. In February 2022, representatives of the company had a meeting with some Russian officials to formally acknowledge their interest in such a development.
About 5 years ago, massive plans for the region, known as the Primorye Gambling Zone, circulated, with local officials presenting the zone as a destination expected to attract a large number of tourists. At first, the announcement has attracted much attention and enthusiasm. At the time, Summit Ascent helped bring the Tigre de Cristal integrated resort to operation, which was then joined by the Shambala Casino. NagaCorp has also voiced its interest in the region before adjusting to the current situation.
For the time being, both Tigre de Cristal and Shambala remain operational, but neither one of them has managed to live up to expectations. Some progress has been noted following the coronavirus lockdowns in 2021 but this is likely to change now, considering the economic sanctions faced by the country.
On the other hand, there is a possibility that Plgen Holdings is not able to realize its plans, or at least not in the initial time frame it has unveiled. For the time being, the majority of gambling operators do not want to do business in Russia, which could make it difficult for the company to find a supplier.
