NagaCorp, Cambodia’s largest hotel and casino operator, has announced that it is open to selling its stalled Russia casino project, according to a report by Nikkei Asia.
The project, which was supposed to be built in the Primorye gambling zone in Russia’s Far East region, has been delayed for several years due to a combination of regulatory hurdles and financial issues. NagaCorp originally signed a deal to develop the $350 million casino in 2013, but construction has yet to begin.
With the coronavirus pandemic causing a significant drop in revenue for the company, NagaCorp is now looking to offload the Russia project in order to focus on its core operations in Cambodia. The company operates the NagaWorld complex in Phnom Penh, which includes a hotel, casino, and entertainment facilities.
According to Nikkei Asia, NagaCorp’s decision to sell the Russia project comes as the company looks to recover from a 96% drop in net profit in 2020. The company reported a net profit of just $21.8 million last year, down from $521.3 million in 2019.
NagaCorp’s chairman, Timothy McNally, stated that the company is actively exploring opportunities to sell the Russia project to potential investors. “We are willing to consider all options, including selling the project outright or forming a partnership with a strategic investor,” McNally said.
The Primorye gambling zone has been touted as a potential rival to the casino hubs of Macau and Singapore, but development has been slow due to a lack of infrastructure and the challenging regulatory environment in Russia. Despite these challenges, NagaCorp remains optimistic about the future of the project.
In the meantime, NagaCorp continues to focus on its operations in Cambodia, where it is one of the largest employers and contributors to the local economy. The company’s flagship NagaWorld complex is a major tourist destination in Phnom Penh, attracting visitors from around the world with its luxurious accommodations, world-class gaming facilities, and diverse entertainment options.
As NagaCorp looks to navigate the challenges of the post-pandemic world, the company’s decision to sell its Russia project marks a strategic shift in its business strategy. With its sights set on sustainable growth and profitability, NagaCorp is positioning itself for success in the evolving global casino market.