Thursday, August 11, 2022

Kaliningrad parcels out land for casino investors

Authorities in Russia’s westernmost enclave, Kaliningrad are parceling out land in the Yantarnaya gambling zone to allow for more investment, according to a state news agency.

Regional governor Anton Alikhanov said: "Now we are at the final stage of delimitation, we [will] parcel it [the land] out to lease it in parts. The asset is very large so it might be difficult for a single investor to implement it alone. Therefore, we decided to play it safe, delimit into many parts to allow several legal entities to divide these plots. I think that we will finish this process in the coming months, and by the summer it will come if not to signing [an agreement] then to serious negotiations."

Alikhanov noted that there is interest in the zone from investors representing gambling businesses.

The decision to parcel out the land came after the termination of a contract with a major investor in the zone.

In 2014, CJSC STK Group of Companies concluded a lease agreement for a land plot of 99.5 hectares in Yantarnaya and an investment deal. It intended to invest at least RUB 44.5 billion (US$704 million) in the infrastructure. 

In 2018, the company transferred all rights and obligations under the lease agreement to LLC GOSLOT-39. In late 2019, the agreement with GOSLOT-39 was terminated as investment was slowing. 

The first gambling facility n the zone - Magic Crystal with 150 slot machines - opened in April 2016. A year later the Sobranie casino started operating. Both are not expected to be affected by the developments, according to regional officials. 

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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