Russian Gambling Pivot Gathers Pace as Panel Approves Kaliningrad Casino Expansion Plan

The operator of the Shambala Casino, in Kaliningrad, Russia, says it has won approval for a major expansion that will include a new eight-story building and a luxury hotel.

The operator, also named Shambala, posted the results of a non-governmental expert review on the state register of construction projects, reported the Russian media outlet ABN 24.

Shambala first unveiled its expansion plans in 2022. This will be the casino’s “second phase,” the operator said.

Shambala also operates a casino of the same name in the Primorye gambling zone, in Russia’s Far East.

The Kaliningrad plans comprise a new eight-story casino building with a five-star hotel, a spa, several restaurants, a banquet hall, and a fitness center.

The total area of the new complex is estimated at 21,000 square meters. The project has already won approval from the Kaliningrad architectural and urban planning council.

In late 2024, officials said the existing casino attracts around 700 visitors per day, 60% of whom are Kaliningrad residents and 1% are foreign visitors.

The firm and its backers say the new casino space and hotel will help significantly boost footfall and revenues, particularly from large urban areas like Moscow.

Kaliningrad Casino Expansion to Finally Begin?

The timing of the review is key. The Kremlin is currently seeking to boost its rapidly growing casino sector.

The country is already home to five designated gambling zones, including Kaliningrad’s Yantarnaya zone.

But President Vladimir Putin has recently approved a plan to add one more in the Altai Republic. This new zone will feature facilities built and funded by Sberbank, the country’s biggest commercial bank.

Shambala Kaliningrad has been pushing for expansion ever since the first Russian gambling zones opened in 2015.

After receiving initial approval in 2023, however, the operator decided to renew its original plans to incorporate a design that officials said “uses Encore Las Vegas as a [design] reference.”

Several serious construction problems have also emerged. Koleso, an investor in the project, revealed in 2024 that developers had already had to replace soil at the construction site.

“The land has turned out to be less than ideal,” he said. “We are essentially in a swamp.”

However, both the investors and the operator remain determined to push ahead with the project.

The operators noted that the Archproject Group, a company owned by Kaliningrad’s former official chief architect, Alexander Bashin, contributed to the expert review.

A Single-Story Casino

Per Shambala’s financial statements, the operator posted 2025 revenues of $29 million, a rise of 7% from the previous year, despite a 1.5% drop in net profits.

Shambala casino’s revenues have also risen recently, climbing over 6% year-on-year in 2025.

Revenues are rising in most of Russia’s gambling zones. Last year, Shambala’s Kaliningrad rival, the Sobranie Casino, said visitor numbers rose 13.4% to 415,000.

The zone is also home to the Magic Crystal slot machine hall.

At present, facilities remain limited at Shambala Kaliningrad’s single-story casino, with few accommodation options and limited dining facilities.

“Right now, we only have a small boutique hotel,” said Koleso CEO Nikita Smolentsev. “And [gamblers] are currently choosing between Minsk and Sochi. With the opening of the new phase and the larger hotel, I think people will start choosing Kaliningrad. The Kaliningrad region is actually a very promising market.”

The Kremlin’s casino sector expansion plans may soon evolve beyond land-based facilities. Gaming chiefs have backed the Ministry of Finance’s plans to legalize online casinos and tax them at a rate of 30% per year.