Under Mr. Putin, Moscow has poured billions of dollars into the area, paying for huge bridges, a new university campus and other costly state-directed projects. But despite ever closer relations between Moscow and Beijing, said Artyom Lukin, an international studies professor at the Far East Federal University, Russia has realized that free Chinese money is not coming.
Chinese gamblers are arriving, however, if only because gambling is illegal in their own country, except in Macau on the southern coast near Hong Kong, and because the forest northeast of Vladivostok offers the only accessible casino for the more than 100 million Chinese who live in provinces just across the border from Russia.
Li Yunhui, a 45-year-old businessman and gambler from Mudanjiang, a Chinese city about 150 miles from Vladivostok, said the Russian casino lacked the amenities and service of established gambling centers like Macau, but added: At least it is close. And the air is clean.
He said he had visited Vladivostok regularly since the early 1990s and could not fathom why Russia had lagged so far behind China in building its economy. It feels like a developing country here. This is how China was decades ago, he said. He added that he had tried to set up a small business in Vladivostok but had despaired at all the red tape: What you can do in a day in China takes weeks here.
The gambling venture is itself a showcase of how slowly things gets done. Government officials began pursuing the idea nearly a decade ago. They enlisted a well-connected local businessman, Oleg Drozdov, to build the hotel and casino complex now housing Tigre de Cristal. But Mr. Drozdov was arrested in 2013 on corruption charges after the ouster of the Primorye regions disgraced former governor, Sergey Darkin.
Summit Ascent, the Hong Kong company that now owns 60 percent of the casino venture, took over the concrete shell left by Mr. Drozdovs builders and, after investing $200 million with other investors, finished the construction and opened the casino at the end of 2015. The company, which reported a modest profit for last year, now plans to invest an additional $500 million to build a second luxury hotel, a golf club, extra gambling rooms and other facilities in the same entertainment zone.
Four other casinos planned by other companies, due to be open by now, are far behind schedule. Empty plots of land with scant signs of construction dot the forest. A Russian court recently canceled the casino project of a Russian developer because it was too slow in getting off the ground.
Eric Landheer, Summit Ascents director for corporate finance and strategy in Hong Kong, said that his company had first mover advantage and a monopoly, but that it did not want to be alone in the forest for long because gamblers preferred a more vibrant cluster of casinos.
Gambling has a long and often troubled history in Russia, where attitudes have been shaped by the Orthodox Church, which opposes casinos as the devils work, and by the writings of Fyodor Dostoyevsky, a gambling addict who explored the allure and perils of addiction in his novel The Gambler.
A champion of traditional Christian values, Mr. Putin banned casinos and slot machines in 2009, complaining that too many Russians lose their last penny and pensions through gambling.
Having Chinese and other foreigners lose their money, however, is apparently not a problem. Indeed, their losses now cover the salaries of around 1,000 Russians working for the Tigre de Cristal casino and provide a badly needed source of income for the Primorsky region around Vladivostok, a city that, aside from corruption-addled, state-funded infrastructure projects, has struggled to attract outside investment. Closed to foreigners during the Soviet era, the city now has regular flights to and from Harbin, Beijing and other Chinese cities, and can also be reached by road and train.
To make the fleecing of foreigners and a restricted number of Russians possible, Moscow gave permission for the establishment of four special gambling zones. The westernmost of these, in Kaliningrad, targets gamblers from neighboring Poland, while the others are in the resort town of Sochi and in the Siberian region of Altai.
Russians are also allowed to gamble at the Tigre de Cristal, so long as they show their passports and register. This has not gone down well with Russian priests and those who see casinos as a poor substitute for healthy economic development.
Anyone who has read Dostoyevsky knows all the problems that gambling brings, complained Andrei Kalachinsky, a veteran journalist in Vladivostok. The spread of prostitution will definitely create jobs, but what kind?
Transportation infrastructure has been another problem. A new highway connecting the casino area to the Vladivostok airport turns into a mud track in the final stretch. A winding road to the center of Vladivostok, around 35 miles away, is so clogged with traffic that Yuri Trutnev, Mr. Putins envoy for the Russian Far East, proposed opening a ferry service to speed up the journey to the casino.
The authorities have also been sluggish in delivering on a promise of visa-free entry for visitors from China and other selected countries. Despite the delay, Chinese can still obtain visas relatively easily if they sign up for a tour, and their numbers visiting Vladivostok and the surrounding Primorsky last year more than doubled to around 300,000.
Yuri Kuchin, an opposition member of the Vladivostok City Council, said local bureaucrats usually hindered rather than helped foreign investments, dragging their feet on most issues unless there is a financial benefit for themselves. While a bitter critic of the government, he said he supported the foreign-led casino project as a source of jobs and a good way to squeeze out illegal gambling dens in the area, which he said were often protected by corrupt officials.
The Primorye Development Corporation, the government agency now responsible for the project, declined to say what was being done to combat illegal clubs or explain how the casino project fit into the regions overall development strategy.
A number of foreign projects in Vladivostok have fizzled, including two five-star Hyatt Hotels that were supposed to have opened for business five years ago but are still under construction. Yet the Tigre de Cristal casino, though delayed by various mishaps like the arrest of a local business partner, is now not only up and running, but is making a profit.
Lawrence Ho, Summit Ascents chairman and son of the Macau gambling tycoon Stanley Ho, acknowledged in a report to investors that the year has not been without its challenges but said, Over all, I am very optimistic about the potential of our investment in the jewel of the Russian Far East.
The most lucrative sources of business at the casino are Chinese high-rollers recruited by so-called junket operators, agents who find gamblers, provide credit, make travel arrangements and manage private V.I.P. rooms at the casino. For these services, the casino pays the junket operators a chunk of what it wins from their clients more, Mr. Landheer said, than the 40 percent to 50 percent paid to them in Macau.
All the same, Tommy Li, a junket manager from northeastern China, complained that Vladivostok offered few of the attractions of Macau and was far too cold in winter. Its only real appeal for Chinese gamblers, he said, is its proximity.
One of his main gripes is that there are not enough prostitutes, who he said were far more readily available, and cheaper, in Macau. Mr. Landheer, the corporate finance director, said his company was not in the business of providing prostitutes and would like to see all illegal activities eliminated.
But, he added, there are many other service providers in Vladivostok ready to satisfy all the gamblers needs.
A version of this article appears in print on July 2, 2017, on Page A12 of the New York edition with the headline: In Russias Far East, a Fledgling Las Vegas for Asias Gamblers.
See the original post here:
In Russia's Far East, a Fledgling Las Vegas for Asia's Gamblers ... - New York Times
- Gambling Addiction and Problem Gambling: Learn How to Stop ... [Last Updated On: December 12th, 2016] [Originally Added On: December 12th, 2016]
- Remote Gambling Association (RGA) [Last Updated On: December 16th, 2016] [Originally Added On: December 16th, 2016]
- William Hill Casino Club - Up To 150 Casino Bonus [Last Updated On: December 19th, 2016] [Originally Added On: December 19th, 2016]
- Gambling - The New York Times [Last Updated On: December 31st, 2016] [Originally Added On: December 31st, 2016]
- Trusted Online Gambling Sites Since 1996 - Online.Gambling.org [Last Updated On: January 7th, 2017] [Originally Added On: January 7th, 2017]
- Casino Gambling Web | Best Online Gambling News and Casinos ... [Last Updated On: January 11th, 2017] [Originally Added On: January 11th, 2017]
- Gambling Addiction and Problem Gambling - helpguide.org [Last Updated On: January 15th, 2017] [Originally Added On: January 15th, 2017]
- Industry: Crackdown on illegal gambling in the Philippines now ... - GamingTodaySlotsToday [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Military should screen for gambling disorder, GAO says - Virginian-Pilot [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Gambling with people's autonomy | Liberties | Risk | spiked - Spiked [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Bill introduced to lower age for legal gambling in Nevada - Las Vegas Review-Journal [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- FIFA YouTuber Pleads Guilty To Gambling Charges [UPDATE] - GameSpot [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Gambling Stock Roundup: Macau Sales Rise Again in January, Nevada Records a Drop in December - Yahoo Finance [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Super Bowl sets gambling record at Nevada sports books - Reuters [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Older gamblers face worse odds for addiction - Times Herald-Record [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- How to Handle Gambling Wins and Losses This Tax Season - TheStreet.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- GAO report recommends military members be screened for ... - wtkr.com [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- The Newest Challenge in Gambling: Finding Growth - Motley Fool [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Raising a question about gambling prohibition - Dothan Eagle [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- A Creepy Dude Is Your Inner Gambling Addict in These Horrifying PSAs From Tom Tagholm - Fishbowl NY (blog) [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Super Bowl Betting Tally Helps Make the Case for Legalized Sports Gambling - TheStreet.com [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- MLB commissioner admits the league is rethinking its stance on gambling - FOXSports.com [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Why I love fake gambling and in-game casinos according to a psychologist - PC Gamer [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- YouTubers fined for running illegal FIFA 17 gambling site - Ars Technica [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Deducting Gambling Losses on Your Taxes - TheStreet.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Gambling pot grows for Madison County - Utica Observer Dispatch [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- How Vietnam Is Changing Its Gambling Rules To Win Foreign Investment - Forbes [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- No truth to alleged link between missing Spencerport teen, illegal gambling - 13WHAM-TV [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- The world's biggest gamblers - The Economist (blog) [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Idaho House Panel Introduces Bill Limiting Indian Gambling - Boise State Public Radio [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Pennsylvania Omnibus Gambling Bill Presented to House - Casino.Org News [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Gamblers caught in Hat Yai open-air casino bust | Bangkok Post: news - Bangkok Post [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Men Fined Over FIFA Gambling Operation - Card Player - CardPlayer.com [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Rob Manfred may change MLB's stance on gambling - SB Nation [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Do you have a mobile gambling/gaming problem? - KMTV [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- OUR VIEW: Transparency needed in gambling operations - Pacific Daily News [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- New York State transformation into the gambling big leagues nearly complete with opening of newest casino - The Daily Freeman [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Kenya: Gambling in Kenya Gets Out of Hand - AllAfrica.com [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Gambling Responsibly - New York Times [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Duterte targets illegal gambling in the Philippines - Yahoo News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- US Grabs Biggest Global Gambling Industry Win Share in 2016 - Casino News Daily [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- UFC 208 odds, gambling guide - MMA Fighting [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Calendar urges gamblers to cut their losses l Dayton, Ohio - Dayton Daily News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Gambling Manga "Akagi" Begins Countdown to Conclusion - Crunchyroll News [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Football's gambling problem: You better, you better, you bet - Football365.com [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- States are gambling with law enforcement safety - The Hill (blog) [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- AFL's gambling ads concern for Cats star - Wide World of Sports [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Celeb Gambling Ring Members Fear They've Been CAUGHT On Wiretaps Making Illegal Bets, Source Claims - Radar Online [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Highway Patrol: Raid of Warren bar uncovers illegal gambling - WKBN.com [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Scary graph shows how Australians are the biggest losers - NEWS.com.au [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Bato: War on illegal gambling won't be bloody - Philippine Star [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Last holdout Lakewood to vote on repealing video gambling ban - Northwest Herald [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- AFL's gambling ads a concern for Geelong Cats star Harry Taylor - The Age [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Online Casinos Generate A Third Of UK Gambling Dollars - CardPlayer.com [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Darlington deputies bust gambling house in Hartsville | News ... - SCNow [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- Kim Jong Un's gambling half-brother reportedly assassinated - CBS News [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- BitcoinCasino.us Ensures Instant Payouts and Responsible Gambling - newsBTC [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Gambling operators are cashing in on teens' addiction to online games - The Canberra Times [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Americans Lost $116.9B Gambling In 2016: Report - CardPlayer.com [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Levine: Rick Hahn, White Sox Gambling On Right Trades At Right Time - CBS Local [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Wesfarmers considers pokies exit in bid to tackle problem gambling - ABC Online [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Massive felony gambling raid in Marietta | WAGA - FOX 5 Atlanta [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- 'War on gambling' starts with small fry - Inquirer.net [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Edgeless Casino Introduces Revolutionary Transparent 0% House Edge Online Gambling - newsBTC [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- FF12: When is gambling illegal in Kansas? - KWCH [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Osage woman accused of stealing, gambling mother's money - Waterloo Cedar Falls Courier [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- 'Operation Parlay' Leads To Gambling Raid, Arrest - Patch.com [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Pete Rose defends legal gambling: 'Who am I hurting?' - Yahoo Sports - Yahoo Sports [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Cops bust alleged gambling ring being run out of Cobb storefronts - Atlanta Journal Constitution [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Dunlap: State Rep. Gets It Right With Sports Gambling - CBS Local [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Gambling Addiction Treatment Center, Rehab - Non Gambler [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Problem Gambling Online Resources - Drugfreeinfo.org [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Attleboro seeks gambling grant for new dispatch center - The Sun Chronicle [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- House gambling bill teed up for next week - SaintPetersBlog (blog) [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Firms oppose Bill regulating gambling - Daily Nation [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Tim Simona faces NRL deregistration after alleged breaches of gambling rules - The Sydney Morning Herald [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Washington State Gambling Commission [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Online Casino USA Friendly Online Casinos for 2017 [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Records: 70 gambling machines seized, two arrested in Alamo raid ... - KGBT-TV [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- Florida House Goes Conservative on Gambling Expansion with New ... - Casino News Daily [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]