Macau Based Melco Signs $700 Million Primorye Territory Agreement

$700 Million Contract Signed Between Melco and Primorye Gambling Territory in Russian Far East

gambling news - GamingZion

Melco has signed an agreement with the administration of the new Russian Primorye (Maritime) Territory, taking the next step in the plans for a new super casino close to Vladivostok.

With Russian gambling laws restricting casinos to gambling territories, the Far Eastern Territory is due to join Kaliningrad Oblast, Krasnodar Krai and Altai Krai as one of four gaming zones in the Russian Federation.

Macau based Melco is a major operator of integrated casino resorts not only in Macau but in Cambodia, the Philippines and Spain. As such, they were seen as perfect partners as the Primorye Territory attempts to bring in foreign gamblers from Asia, especially the Chinese from just over the border.

This piece of gambling news confirms earlier reports that the deal was due to be signed, and will see the largest casino project in the Russian Federation get underway outside of Vladivostok. It is anticipated that the new gambling zone will create 20,000 jobs in the region, while the Melco resort will create 1,600 on its own.

With online casinos in Russia not technically legal, the burden of casino gambling falls mainly on the shoulders of these 4 regions, so the new zone at Primorye is expected to bring in a large tax take for the government. With experts expecting tourism to increase from 8 million to 12 million, once the casino resort is completed, the area will be one of the major entertainment tourism destinations in the Far Eastern region.

Oleg Drozdev, the partner from The First Gambling Company of the East, said: “The investment is expected to be completed by 2017. The exact amounts and schedule of payments may be adjusted. Yet, the total amount of $700 million will be invested in the Primorye gambling zone. This amount has been clearly set in all the agreements and none of the partners have any doubts that these investments are realistic.

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