The Russian casino industry is going through hard financial times, despite Moscow’s plans to significantly expand its size and scope.
Profits of casino operators in Sochi and the Kaliningrad Oblast have dropped by nearly half in recent months, the media outlet Forbes Russia reported.
This appears to point to a rise in overheads, as visitor numbers have remained steady, and revenues are on the rise. The legal casino sector generated $463 million in revenue in 2025, up over 15% from the previous year.
But total profits dropped by almost $14 million, with only the casinos in Far Eastern Primorye gambling zone bucking the national trend.
Primorye, which will soon welcome two new casinos, has become a tourist hotspot for Chinese gaming fans. One of the new casinos is being funded by a Chinese developer.
Experts told the media outlet that this is a sign that Russians are “shifting to a savings model” that sees them spend less on games and entertainment.
Dmitry Anfinogenov, the head of the Association of Entertainment Industry and Event Tourism, said visitor numbers continue to grow.
The association, the Russian casino sector’s largest industry group, said domestic casinos expect to welcome over 570,000 guests this summer.
Anfinogenov said non-gambling revenues are also skewing the numbers. A growing number of venues now focus on concerts, festivals, and sporting events, with many focusing on restaurant and hotel expansion projects.
But the profit drop appears too large to explain away in some casinos. The Uni Gaming Company, which operates casinos in the Kaliningrad Oblast, has seen year-on-year profits drop by 58%.
Domain, which operates casinos and slot machine halls in Krasnaya Polyana near Sochi, blamed the economy for a 50% drop in profits.
“It’s primarily due to external factors,” a Domain official told Forbes Russia. “Inflationary pressure has significantly increased costs across the board.”
Russian Casino Industry: Feeling the Squeeze?
Casinos say that new tax rules are also proving hard to deal with.
“Due to tax changes in 2025, more and more suppliers and contractors are working with VAT,” the Domain official said. “That is non-refundable for gambling operators.”
But this appears to be just part of the picture. The Russian gambling pivot has seen scores of developers unveil ambitious expansion plans for the country’s gambling zones.
The Kremlin has even approved a plan to create a new zone in Siberia. This zone will have the financial backing of Sberbank, the nation’s largest financial group. Experts say the resulting casino will rival those of Macao.
Domain said that, for its part, it has “implemented an investment program” with updated gaming equipment and new halls, which have driven up operating costs.
But others say there are clear signs Russians are becoming more reluctant to gamble.
Sergey Romashkin, the Vice President of the Association of Tour Operators of Russia, said consumption is down nationwide.
“People have become more prudent and cautious in their spending,” he said. “Throwing money away at casinos isn’t on their agenda. This is the type of spending that declines during a crisis.”
Russians Are ‘Spending Less in Casinos,’ Says Industry Chief
Even casinos admit that casino revenues have been affected by spending patterns and an economic slowdown.
“The number of guests hasn’t decreased, but they’re now spending less on gambling,” said Anfinogenov. “The decline in spending in large cities has also impacted gambling zones.”
The Primorsky Krai-based Primorye continues to buck the trend, however. And that is thanks mostly to its aforementioned proximity to China, the industry says.
Anfinogenov said Chinese gamblers already account for 18% of visitors to Primorye. By the end of summer, he said, that figure could reach 25%.
Speaking in February, the Transport Minister Andrei Nikitin said that since Russia began waiving visas for Chinese tourists, passenger traffic between Russia and China has shot up by 46%.
Despite the rise in Chinese visitors, the Russian casino industry appears keen to curb expectations of a rapid recovery.
“People are traveling less,” said Anfinogenov. “We do not predict significant growth.”
