The Primorye government passed an amendment on Wednesday which will provide a six-month tax relief extension for gambling operators in its zone.
Introduced in 2H20 as a means to ease the burden on operators during the pandemic, the tax relief extension has been the result of a “worsening economic situation” in the face of external sanctions, according to Galust Akhoyan, Chairman of the Committee on Fiscal Policy and Financial Resources of the Legislative Assembly of Primorye.
Russia has been embroiled in a war against Ukraine, with countless countries imposing sanctions or travel bans to the country.
Last month, Summit Ascent Holdings, operator of the Tigre de Cristal said there had been no immediate impact from the sanctions imposed on Moscow, as the property has been self-sufficient on domestic patrons.
However, the company admitted that going forward it would have to “adjust our operations to the reality of a volatile business environment and try to find ways to do business within the new constraints we may be facing.”
Under the amendments, casino operators in the region, including Tigre de Cristal and the Shambala Casino, will see reduced tax rates for the gaming table and slot machine revenue from April until September 2022 inclusive.
Primorye estimates the reduced taxes will amount to around RUB39.8 million (US$481,000 at the current exchange rate).