Inside Asian Gaming

INSIDE ASIAN GAMING | August 2012 44 Briefs Regional Briefs of about US$2 billion. In a document made public last month, state-owned Nash Dom Primorye, the developer, invited companies to bid on the project, promising favourable lease terms and effectively zero taxes on gross gambling revenues in exchange for creating jobs and developing the area’s tourism industry. Macau, but contrast, has a 39% tax on gross gambling revenue, while Singapore taxes gambling revenue at around 15%. Companies bidding for the Russian project should focus on generating inbound tourism from East Asia, specifically South Korea, Japan and greater China, the filing said. Vladivostok, which has been undergoing a facelift ahead of hosting the APEC summit in September, is two hours by plane from Seoul and Tokyo. Revenues from the tourism zone, whichwill include luxury hotels, a yacht club, shopping malls and sporting venues for skiing and golf, could hit $2 billion-$7 billion once the zone is complete, industry analysts have speculated. Russian nationals will be able to legally gamble in the zone, unlike countries such as Vietnam, where only foreign passport holders can gamble. The zone, which can accommodate about five large resorts, will give operators control of the land until 2025 under terms that can be extended. There is no maximum restriction on the amount of allowable casino gambling space, but the government wants companies to ensure that non-gambling revenues make up a large proportion of total revenues on a model similar to Las Vegas, a resort destination popular with conventions. Casino operators will be allowed to compete on the extension of credit to gamblers, according to the Request for Concepts document. Bidders are also being asked to suggest how junket companies, who act as a conduit in bringing in wealthy high rollers, should be regulated. “At present, there is no legislation in the Russian Federation that regulates junkets and junket licencing,”saidMarina Lomakina, general director of OJSC Nash Dom Primorye. “However, we envision that in the future the integrated entertainment zone will be closer to that of Las Vegas than to the stricter controls that we see in Singapore.” Russia was using a process similar to that used by Singapore to select casino companies and would implement “strict international standards” against money laundering and illegal money lending similar to those of Las Vegas, Macau and Singapore. The deadline for submitting proposals is 21st September. The government will then review the bids and start discussions with potential investors by the end of October. Melco Crown Still Awaiting Approval for Casino at Macao Studio City Macau casino operator Melco Crown Entertainment Ltd still does nott have permission to build a casino at its latest project, according to a revised government contract published on 25th July. The Macao Studio City project, in which Melco Crown has a 60% equity interest, is designated for a five-star hotel and film facilities, indicates the latest government contract detailing various revisions to the agreement. But the document does not mention any casino facilities despite the company’s earlier statements they hope to open up to 400 gambling tables at the property. While it is possible the government could give the green-light Sands Get Deadline Extension on Cotai Parcel 3 Las Vegas Sands Corp.’s Macau unit said the local government has given it a three-year extension to finish construction of the planned integrated resort known as “Parcel 3,” which will be connected to its flagship Venetian Macao property. According to a Dow Jones Newswires report, Sands China Ltd announced on 16th July that the Macau government will now give it until 17th April, 2016, to complete the project. Sands China was initially supposed to finish the project by August 2011, previously received an extension until April 2013 and then applied for another extension earlier this year. Had the company not received the government’s approval to continue construction, it could have lost its land rights to the area as well as the money it had already invested in developing the land— US$96 million, according to LVS’ 2011 annual report. Sands China also said the Macau government will impose a penalty fine on it for the construction delay. The company said the government would notify it of the amount, without elaborating. Vladivostok Casino Zone Offering Near Zero Tax Rate A Russian territory hoping to lure global casino operators to set up large-scale resorts has unveiled initial guidelines that offer companies more lucrative terms than Macau and Singapore, according to a Reuters report. Home to the port city of Vladivostok, Russia’s Primorsky Territory, a mountainous region bordering China and Korea, is planning to develop 12 casinos with the first phase of a three-part rollout to be completed by 2016 and a planned total investment Rendering of planned development on Cotai Parcel 3 Seeking bidders—central Vladivostok