Russia Eyes Casino Zone to Woo Tourists

Russia is placing bets that plans to build a gambling and entertainment zone near the port city of Vladivostok will lure investors who have spent big money on casinos for Asian gamblers in Macau and Singapore.

Vladivostok, located near China and known more for its oil and gas pipes, has been undergoing a facelift ahead of hosting an APEC summit in September.

It will, however, also face competition from Asian nations such as Vietnam and the Philippines, which are setting up similar tourism and entertainment zones.

Russia's state-owned Nash Dom Primorye is set to announce at the Global Gaming Expo in Macau on Wednesday that it is seeking private investors and/or companies to build casino resorts in a six km square area near Vladivostok.

Vladivostok is one of four official Russian government zones where casino gambling is legal but is the only one that has formally initiated plans to lure foreign investors.

Known as the Integrated Entertainment Zone, the project has space for roughly five large resorts.

A report from Gaming Market Advisors, which conducts casino market research, estimates the zone could attract revenues of USD$2 billion to USD$7 billion when completed. By comparison, Singapore took in more than USD$5 billion in 2011.