Operator News
Russia – Melco Crown yet to confirm Primorye commitment
By Phil - 4 July 2013
Despite media outlets across the world reporting it as fact, Melco Crown Entertainment has so far refused to confirm its involvement as a casino operator in the future Russian gaming zone ofPrimorye.
Speculation has been intense since Summit Ascent Holdings, a Hong Kong-based company that is 37 per cent owned by Lawrence Ho, the co-chairman of Macau casino operator Melco Crown Entertainment, signed a preliminary agreement to invest in a ‘gaming and resort development project in the Russian Federation,’ according to the company’s June 28 filing to the Hong Kong Stock Exchange.
However, Maggie Ma, Head of Melco corporate communications, said: “We’re aware of the news reports. It is market speculation and thus, we will not provide any comment.”
The rumoured casino would be built in Primorye, in eastern Russia bordering China and Korea, lending itself to at least some of Melco’s customer base travelling to its operations in Macau and The Philippines. Flight times from Beijing to Vladivostok are only 2.5 hours, compared to the 3 hours and 45 minutes it takes to fly from Bejing to Macau.
Summit Ascent’s preliminary agreement on the Russian casino is ‘subject to fulfilment of a number of conditions including legal, accounting and construction due diligence,’ the company said in its filing. It added that it required a definitive investment agreement on or before August 15, it said.
The press service of the Russian Maritime Territory has told the Russian media that an investment agreement has already been reached.
Casino gambling is only allowed in four zones in Russia; Azov City in Krasnodar Territory in southern Russia, Yantarnaya in Kaliningrad Region; Siberian Coin in Altay Territory; and Primorskaya in the Far East.
