Rising attendance, falling profits and mounting costs are reshaping Russia’s gambling industry as operators pursue new growth. By Eugene Gerden
The Russian gambling sector continues to develop actively this year, despite sanctions and an increasingly difficult business environment in the country. Demand for gambling among local people, however, remains generally strong. In fact, gambling has long been associated with significant profits for Russian casino operators and the state. This is reflected in official statistics from the industry’s Association, which show that annual profit growth for Russian casinos between 2012 and 2022 was in the range of 15%–20%, and sometimes even higher.
However, the situation changed in 2022 with the beginning of the Russian-Ukrainian war and its associated negative consequences for the Russian economy and local population. The beginning of the war and the introduction of Western sanctions resulted in a decline in revenue for local casino operators, the first such decline since the collapse of the USSR in 1991.
Russia’s Gambling Zones
At present, casino activities in Russia are legal only within designated territories known as gambling zones. These measures were introduced by the state in response to the widespread growth of gambling, multi-billion-ruble casino turnover and the growing number of gamblers in Russia during the early 2000s. There are currently four operating gambling zones in Russia: **Krasnaya Polyana, Sibirskaya Moneta, Primorye and Yantarnaya.**
“The decrease in net profit is primarily due to external factors,” a company spokesman said. “Inflationary pressure has significantly increased costs across the board, and due to tax changes in 2025, more and more suppliers and contractors are working with VAT, which is non-refundable for gambling operators,” he added.
At the same time, the company implemented an investment programme last year, updating its gaming equipment and launching a new hall, which increased operating costs. Implementation of the programme is continuing this year.
The decline in revenue was also observed among other Russian operators. For example, **Koleso LLC**, the operator of Shambala Casino in the Kaliningrad Region, reported a 26% decline in profits. **Altai Palace**, which manages the Sibirskaya Moneta gambling zone near Gorno-Altaysk, posted a 5% decline.
Falling Consumer Spending
Most local analysts attribute the noticeable decline in casino profits to several factors.
According to Sergey Romashkin, Vice President of the Association of Tour Operators of Russia (ATOR), gambling zones have increasingly promoted themselves through concerts and other events in recent years. He also noted that, due to an increase in the number of non-gamblers, the number and amount of bets are declining. He added that casino operators’ expenses are rising, including those associated with attracting new visitors.
“For example, regular advertising on the Russian major web service Yandex has become very expensive: a tourist is now 30–40% more expensive for us than a year or two ago,” he said. The second negative factor is the overall decline in consumption among Russians, caused by the current economic crisis in the country, which is also evident in tourism sales.
Sergey Romashkin continued:
“This also applies to travel packages; we’re seeing a decline in demand for Sochi. A similar situation is also observed in Kaliningrad. People have become more prudent and cautious in their spending, and, of course, gambling isn’t part of their plans at present. This is the kind of spending that declines during times of crisis.”
Meanwhile, a similar position is shared by Dmitry Anfinogenov, Executive Director of the Russian Association of Gambling Zones (AIRIS). As he explained in an interview, the number of casino visitors has not decreased, but they are now spending less on gambling. According to him, the decline in consumption in large cities has also affected gambling zones.
Primorye Bucks the Trend
The Primorsky Krai gambling cluster is the only gambling zone in the country to have posted profit growth in 2025. **G1 Entertainment**, which operates the local flagship **Tigre de Cristal** casino in Vladivostok, earned 2.18 billion rubles in net profit, compared with 2.14 billion rubles in 2024. Last summer, British executive Gavin Cartwright took over the company as COO. After Russia introduced visa-free entry for Chinese citizens last September, the share of Chinese players at Primorsky Krai casinos increased. They currently account for 18% and could reach 25% by the end of the summer season. This increase has also been driven by the launch of new flights between Vladivostok and Chinese cities over the past year.
According to Transport Minister Andrei Nikitin, following the introduction of visa-free travel, passenger traffic between Russia and China increased by 46%. According to analysts, despite the ongoing decline in industry revenue, the growth in casino attendance in Russia will probably continue during 2026–2027. This will primarily be driven by the existing difficulties many Russians face when travelling abroad. In addition, as the country’s military and industrial production continues to expand, this is leading to growth among local citizens working directly or indirectly in the military sector who are beneficiaries of the war. At present, tourist traffic to gambling zones is growing. Last year, 1.75 million people visited them, compared with 1.68 million the previous year.
This summer, from June 1 to August 31, Russian casinos expect to welcome more than 570,000 guests, according to Dmitry Anfinogenov. According to him, in Q1 2026, 602,772 people visited the gambling zones, compared with 571,503 during the same period last year. Anfinogenov said gambling currently accounts for approximately 10% of the total tourist flow in a particular Russian region where a gambling zone is located.
He added that attendance is growing due to event tourism, which gambling zones are actively developing and promoting through concerts, festivals and sporting events, as well as through the opening of new hotels, restaurants and concert venues.
At the same time, another reason for the growth in casino attendance is the improvement in the level, quality and range of services provided by Russia’s gambling zones.
Beyond Gambling
According to experts from the Russian Association of Gambling Zones (AIRIS), amid the ongoing development of infrastructure within domestic gambling zones, the share of non-gambling income is also growing. According to AIRIS data, its share of overall revenue is increasing by approximately 5% annually. Currently, the gaming zones of Las Vegas and Macau are considered benchmarks for many Russian casino operators, who seek to incorporate their concepts and experience into their own operations. In 2026, all existing gambling zones plan to continue developing their infrastructure, both gambling and non-gambling. In terms of non-gambling activities, the volume of investment has increased significantly in recent years. Examples include the launch of the Altai Palace Medical SPA medical centre and a padel tennis court by the Sibirskaya Moneta gambling zone. Last year, Sobranie Casino – one of the largest casinos within the Yantarnaya gambling zone in the Kaliningrad region – launched its own poker club
Meanwhile, Tigre de Cristal, a casino in the Far Eastern gambling zone in Vladivostok, is planning significant investment in the development of its hotel and leisure infrastructure. Finally, according to Maksim Smolentsev, CEO of Shambala, this year the company is planning the active development of hotel and hospitality infrastructure within the Kaliningrad and Primorye regions.
Integrating Gambling With Tourism
One of the key priorities for the Russian gambling sector today is to accelerate its integration with the country’s tourism industry. According to Dmitry Anfinogenov, the industry is continuing to pursue this strategy. As he explained, the growth of non-gaming revenues, new event formats and the diversification of services demonstrate that the industry is not limited to gambling. According to him, this attracts additional players and tourists to the Russian regions where gambling zones are located. Meanwhile, operators are also seeking to further popularise gambling activities in Russia. Some steps in this direction have already been taken. For example, last year AIRIS, together with private investors, launched the first tourism project, **“Casino Week of Russia.”** The project is aimed at supporting off-season demand for gambling in the country. Its successful implementation should contribute to the growth of tourist flows to the regions where gambling zones are located, particularly during the autumn and winter seasons. This will also be supported by recently adopted amendments to the existing federal law on tourism, **“On the Fundamentals of Tourism Activity in the Russian Federation,”** by the Russian Parliament (State Duma).
Tax Pressure
As for taxation, tax pressure on the industry has increased in recent years. At present, gambling zones in Russia pay a number of taxes. In addition to standard personal income tax, VAT, property tax and profit tax, there is also a specialised tax on the gambling business.
This is charged for each installed gaming table and machine and varies depending on the region, ranging from **50,000 to 250,000 rubles per table** and **3,000 to 15,000 rubles per machine**. Despite the pressure on revenues and increased operating costs, Russia’s gambling zones continue to invest in gaming, hospitality, tourism and entertainment infrastructure. The sector’s development therefore appears increasingly linked not only to casino gaming itself, but also to its ability to attract tourists, develop wider entertainment offerings and integrate gambling destinations into the broader tourism econom
*** This exclusive feature was originally published in the September 2026 edition of Casino Life Magazine Issue 191 Volume 22***
