• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Tax hike reports at odds with Russia IEZ policy: operator

Feb 16, 2016 Newsdesk Latest News, Top of the deck, World  


Tax hike reports at odds with Russia IEZ policy: operator

Reports in the Russian media – citing the Ministry of Finance – suggest that the tax burden on “gambling business” might be increased in the country.

But there are conflicting accounts about by how much, and whether casinos in four so-called Integrated Entertainment Zones (IEZ) in Russia would also be affected.

The casino venues include Tigre de Cristal – a project led by Summit Ascent Holdings Ltd, a company controlled by Asian gaming entrepreneur Lawrence Ho Yau Lung – in Primorsky Krai’s Primorye IEZ near Vladivostok in the Russian Far East.  The venue had its official launch on November 11.

The other IEZs are in the Kaliningrad Region, in Altai Krai and in Krasnodar Krai.

A translation to English of a Friday report from Russia’s Kommersant newspaper suggested there could be a “tenfold” increase on tax on “gambling business” in Russia.

But industry sources said that could possibly be a reference to sports books, other bookmakers, and “totalisers” – i.e. operations linked to pari-mutuel betting, a form of gambling typically found in horse racing. According to two sources spoken to by GGRAsia, sports books and totalisers must respectively pay a levy of RUB7,000 (US$90) per month per betting shop or outlet.

Eric Landheer, director of corporate finance and strategy at Hong Kong-listed Summit Ascent, said on Monday that any hike in taxes payable by Tigre de Cristal would be at odds with Russia’s IEZ policy, which he said aims to bring investment to targeted Russian regions.

Tigre de Cristal’s tax payments are in the form of a levy per slot machine per month of RUB7,500. There is also a levy per table per month of RUB125,000.

“In our experience, the Russian federal government, and the provincial government of the Primorsky Krai have been very supportive of our project; of the economic development of the region itself; and in our experience have had a pro-business stance,” Mr Landheer told GGRAsia.

He added: “Any action to the contrary would be in our opinion irrational, and contrary to our experience in terms of the stance of the Russian government at both the federal and local level.”

The executive further stated: “Number one, there is no actual draft legislation at the moment that’s been presented to the State Duma. Number two, there’s been no actual specific official quoted. Number three, news around taxes in sports betting and other areas has been out for some time, and it’s only since Friday that all of a sudden IEZ’s are being mentioned in this context in media reports.”

According to one industry source spoken to by GGRAsia, sports betting is one of the most popular gambling product segments in the Russian domestic market.

Kommersant said what it termed “bookmakers” might be required to pay 10 percent of their earnings from online gambling. According to Kommersant’s report, the condition would be included in a bill due to be drafted by December. It would then need to be presented to the State Duma (pictured), the lower house of the Federal Assembly of the Russian Federation. If passed it would then be considered by the Federation Council, the upper house.


  • tweet
Related articles
  • Hoiana Phase 2 to start this year says Suncity brand
    Hoiana Phase 2 to start this year says...

    Jan 06, 2021  

  • Macau VIP dip by compound 4pct yearly to 2023: brokerage
    Macau VIP dip by compound 4pct yearly...

    Nov 25, 2020  

More news
  • Macau Covid-19 case no bar to mainland travel ties says govt
    Macau Covid-19 case no bar to mainland...

    Jan 22, 2021  

  • Mohegan seeks govt nod to delay Inspire opening
    Mohegan seeks govt nod to delay Inspire...

    Jan 22, 2021  


Latest News

Macau Covid-19 case no bar to mainland travel ties says govt

Macau Covid-19 case no bar to mainland travel ties says govt

Jan 22, 2021  

A newly-confirmed Covid-19 case involving a Macau ID holder brought home on Thursday aboard one of two repatriating flights sanctioned but not chartered by the city’s government, will not put...
Read More
Mohegan seeks govt nod to delay Inspire opening

Mohegan seeks govt nod to delay Inspire opening

Jan 22, 2021  

Half Kangwon Land staff on mandatory leave until Jan 31

Half Kangwon Land staff on mandatory leave until Jan 31

Jan 22, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The entire company is eagerly anticipating the launch of our newest themed destination – The Londoner Macao"

Wilfred Wong Ying Wai

President of Macau-based casino operator Sands China



Most Popular

  • CNY 2021 unlikely to boost Macau casinos, say observersCNY 2021 unlikely to boost Macau casinos, say observers January 15, 2021
  • Casino op MGM China to pay most staff discretionary bonusCasino op MGM China to pay most staff discretionary bonus January 18, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
  • Investors see 2H Macau gain, rebound 2022: BernsteinInvestors see 2H Macau gain, rebound 2022: Bernstein January 19, 2021
  • Sands China sixth Macau op to pledge staff extra paymentSands China sixth Macau op to pledge staff extra payment January 21, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us