Gambling lands
Kaliningrad region is thought to become real tax heavens for casino and slot machine owners: the status of a special economic zone (SEZ) will let its residents use all benefits provided by law.
On January 18th, the government confirmed the plan of making seven SEZs of tourism and recreation type. as the “Business” managed to find out, in three regions they will be in direct proximity to the places where all gaming business shall have been relocated by July 1st, 2009. They are Krasnodar, Altay and Kaliningrad regions.
“The solution is quite reasonable. Gaming business is an important component of tourism, thus the proximity of zones where gambling is allowed to centres of tourism will essentially increase their attractiveness for investors,” notices Boris Belotserkovsi, Vice-President of Russian Gaming Business Development Association.
Kaliningrad region might become the most attractive one for gaming business. In this area, as many as three zones will be collected at the same time: a special economic zone, a tourism and recreation zone and a gaming zone. Gaming business representatives hope to enter the list of SEZ residents; the SEZ started functioning on April 1st, 2006. Let us remind you that a company which receives the status of a resident, will be relieved from profit and property taxes for six years.
Kaliningrad region administration still refuses to officially comment on setting up the gaming zone, referring to the lack of final decisions on its location. However, a source of the “Business” in the regional executive authorities claims that “Kaliningrad region has the status of a SEZ, therefore tax preferences, in compliance with the passed legislation, are provided for all investors”.
Experts believe it to be fair. “Due to its geographic position, it is hard for Kaliningrad to attract capitals from Russia. In this respect, it seems quite prospective to attract investors from neighbouring states – Poland, Lithuania, other countries of the European Union. It gets even more possible if gaming companies obtain the status of SEZ residents”, says Elena Moskovskaya, a partner of the “BDO Union Consulting” company. “Without tax concessions, investors might just not get interested in Kaliningrad site due to its remoteness and lack of infrastructure,” agrees Evgeniy Kovtun, Vice-President of Gaming Business Operators Association.
Two other regions where tourism zones will be next door to gaming ones, are not planning to give businessmen additional tax concessions. However, as gaming market participants claim, the very neighbourhood to tourist sites must essentially increase the attractiveness of gaming zones.
The distance between the future tourism and gaming zones in Altay region is 150 km.. in Krasnodar region – 200 km. “We would certainly like them to be closer to each other but even such neighbourhood and the fact that the state is planning to modernize airports in these regions and make infrastructure for tourism zones gives optimism to us,” says Kovtun. Since it was decided to set up zones, the demand for land in Altay region has considerably grown up. “Lands of Smolenski region where the gaming centre is supposed to appear, are being bought up. I think that the decision on making a tourism zone in the neighbouring area of Altay will provoke prices to raise as well,” claims Evgeniy Vostrikov, General Director of “Altay-Izvest” CJSC (an investor of the “Biruzovaya Katun” tourist complex).
Source: the “Business”