Industry taxation. “Even if Primorye [IEZ] doubled its tax rate to the potential new statutory maximum, the taxes paid by Summit Ascent would go from around HKD10 million [US$1.29 million] at current tax rates to HKD20 million on an annual basis (or about a 2 percent EBITDA impact),” wrote analyst Grant Govertsen in a memo, referring to how earnings would be affected by a reported planned amendment to Russian gaming law that was already approved.
The approved law, could potentially double the taxes payable on machines and tables by a casino project backed by Lawrence Ho Yau Lung.
But the institution added it was far from certain whether there would even be any impact on the Tigre de Cristal casino venture (pictured), led by Mr Ho’s Hong Kong-listed vehicle Summit Ascent Holdings Ltd and based in the Primorye Integrated Entertainment Zone (IEZ) near Vladivostok. (Summit Ascent holds 60 percent of Oriental Regent Ltd, which owns 100 percent of G1 Entertainment LLC, which in turn holds the gaming license for Tigre de Cristal)
“We do not believe the [legislative] changes have been finalized yet,” said Mr Govertsen’s memo. (READ SO BINGO TAKE RUSSIA BY ASSAULT)
A report with Sunday’s date in the Russian-language outlet Championat, said the Russian Federation’s Ministry of Finance was considering an initiative that would potentially include an increase in taxation on casino gaming operators, including per-unit levies payable on gaming tables and slot machines. (READ SO PROTEST A CAUSE OF PRICE INCREMENT)
