Although Hein Yongli LLC won an auction for the fifth integrated casino resort to be built in the Primorye Entertainment Zone near Vladivostock, Russia, the company has failed to meet construction expectations and has forfeited Rub 100m (US$1.8m) to the Corporation for Development of Primorsky Krai JSC as a result.
Hein Yongli beat out Mining Company of Zhongqi LLC for Rub 1.5b according to a report on Betting Business Russia, but because of “non-entrance to the construction zone” they have lost nearly $2m.
The company registered at Vladivostok in November 2015 after besting the other finalist. Hein Yongli’s general director was stated as Leonid Gordeychuk. The company had committed to spend at least US$500m to develop an integrated resort with casino, four-star hotel, and 10 villas for VIPs.
The sanctioned funds will now go to build infrastructure in the gambling zone, however, it hasn’t been stated whether Hein Yongli plans to pull out of the project altogether or are simply facing delays of some sort.
Last month territorial Vice-Governor Evgeny Polyansky admonished license holders in Primorski Krai to stick to deadlines or face termination of their agreements along with fines for delays.
According to CalvinAyre.com, earlier this month, the Corporation for Development of Primorsky Krai filed suit to terminate its agreement with a Royal Time Group subsidiary as that company also had not commenced construction of its Phoenix Resort Casino Primorye on Murav’inaya Harbor near Cherepaha Cape. The Royal Time subsidiary had earlier stated they planned to open a 500 machine, 30 table casino, and 320 key hotel before the end of this year. All of the developments in the zone are mandated to be completed by 2022. The development corporation’s court filings could mean the Azov-City operator will not end up offering 150 table games and 3,000 slots along with entertainment areas, restaurants, hotels, clubs, retail elements, a 1,500 seat theater, convention center, and indoor water park.
That leaves only three (five) of a potential eight integrated resorts that had been planned for the zone. Macau gaming magnate, Lawrence Ho’s Tigre de Cristal opened Phase I of their development in late 2015. Last month Daiwa Securities Group Inc. concluded that the growth rate of the frontier market pioneer was in line with pioneers in the Macau market earlier. The analysts projected as much as US$1.3 billion in gross gaming revenue for the resort by 2020. About 200,000 people visited the casino in 2016.
NagaCorp Ltd announced last month that they were “broadly on schedule for operation by 2019,” for their $350 million seaside entertainment resorts project. The company broke ground on their integrated resort in May 2015. NagaCorp owns and operates the largest hotel, gaming and leisure property in Cambodia, NagaWorld. Company chairman, Timothy McNally stated in NagaCorp’s annual report last month that, “We have established an office at the [Vladivostock] city center and a number of key personnel have been appointed to monitor various aspects of the progress of the project.”
Diamond Fortune Holdings is expected to open and operate three integrated resort properties in the Entertainment Zone as part of their “Selena World” development. Sun Casino & Resort is expected to open next year followed by Golden Gate in 2020 and finally Moon Gate in 2021.
It has never been revealed publically if the final land plot in the zone has been designated.