Russian court refused the lawsuit of the Shambhala company (former operator in Azov City), which demanded that the local authorities pay 1.5 billion rubles. The court pointed out that the investor has no legal basis for transferring casino buildings to the region, and the losses of Shambhala are due to entrepreneurial risks. The management of Shambhala intends to appeal to Constitutional Court, but lawyers see little chance of resolving the dispute in favor of the investor.
The Shambhala company owns the facilities of the Park City gambling and hotel complex, including the buildings of the Shambhala and Nirvana casinos, five restaurants, a hotel with 150 seats, communal infrastructure, a total of 26 real estate objects, as well as gaming equipment ( 40 gambling tables and 750 slot machines). The Azov City gaming zone ceased operations on January 1, 2019.
When filing a lawsuit in court, the Shambhala company initially demanded compensation of 3.3 billion rubles, but then the investor reduced the amount to 1.5 billion rubles, and also asked to return the property taxes paid for 16 million rubles.
It is worth mentioning that the Azov City gambling zone was closed on January 1, 2019. Russian law does not allow two gambling zones in one region. Thus, the government decided to close Azov City and develop Sochi gambling zone Krasnaya Polyana.