The Tigre de Cristal Casino Resort situated in the Russian city of Vladivostok is up for sale.
The Tigre de Cristal Gambling Resort, located close to Vladivostok in Russia, is up for sale. The LET Group Holdings, its current owners, have chosen to offload the property due to the unfavorable economic and political climate in Russia caused by international sanctions imposed following the Ukraine conflict.
Andrew Lo, a Hong Kong entrepreneur and the CEO of the Crystal Group, reportedly made the decision to sell the Tigre de Cristal Resort several months ago, as reported by iGB, a gambling news portal, and other media outlets. Operating the casino amidst geopolitical instability and significant financial risks was the reason behind Lo's decision, given the ongoing conflict between Russia and Ukraine.
The sanctions imposed on Russia have also contributed to this decision. They have negatively impacted travel and tourism in the country, leading to a decrease in visitor numbers. An initial attempt to sell the Tigre de Cristal Resort to the Russian company Актив (Aktiv) for around 116 million USD failed in January 2024.
Summit Ascent Holdings reported a loss of 29 million USD in the business year 2021 following the commencement of the Ukraine war. However, in 2022, the company managed to increase its revenue by nearly 40% with the help of the Tigre de Cristal Resorts. Despite this, 2022 ended with a loss of 52.1 million USD, due to high financing costs of the resort and losses from depreciation.
Origins of the Tigre de Cristal Casino
The Tigre de Cristal Resort was established in 2013 in the Primorye Integrated Entertainment Zone (Russia's casino zone, near Vladivostok). Summit Ascent Holdings, a subsidiary of LET Group Holdings, constructed the first casino-resort in the country for approximately 72 million USD. The resort officially opened in November 2015, after a construction period of about three years.
In 2017, a second phase of construction commenced, which expanded the Tigre de Cristal Resort with additional hotel rooms and over 300 slot machines and roulette and blackjack tables.
The expansion was initially planned to be completed in 2018. However, due to the COVID-19 pandemic and the subsequent difficulties in procuring building materials and tender processes, the second phase was not completed until 2023.
In addition to slot machines, players also have access to around 30 gaming tables. These include roulette, blackjack, poker, and baccarat. The Tigre de Cristal Resort offers 121 hotel rooms and features restaurants and bars, a fitness studio, and a spa and wellness area. Regular concerts and entertainment shows are also held.
Furthermore, gamblers in Russia can visit the Sochi Casino & Resort, which opened in 2017.
The Impact of the Ukraine War on the Tigre de Cristal Resort
Since the onset of the war between Russia and Ukraine, the European Union, the USA, and the UK have imposed 16,500 sanctions against Russia. These sanctions include restrictions on imports and exports, travel bans, and the freezing of 328.5 billion euros in currency reserves.
These sanctions also affect the supply chains and procurement routes for the Tigre de Cristal Casino Resort, prompting Summit Ascent Holdings to decide to sell the casino.
It remains to be seen if the Tigre de Cristal Resort will be sold to a Russian buyer or if a foreign company will purchase it despite the uncertainties in the country.
The sale of the Tigre de Cristal Resort has been extensively covered by various news outlets, including iGB.In addition, the economic and political instability in Russia caused by international sanctions has negatively impacted travel and tourism, leading to a decrease in visitor numbers at the resort.
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