SOUTH KOREA

Korea’s foreigner-only casinos post strong gains in 2018

South Korea’s foreigner-only casinos posted strong revenue growth in 2018, gaining 34 percent over the prior year, according to figures from the country’s National Gambling Control Commission.

Foreigner-only revenue amounted to KRW16.25 trillion ($1.4 billion), up from KRW12.07 trillion the prior year. Revenue at Kangwon Land, the only casino permitted to allow locals to gamble, fell 8 percent to KRW14 trillion.

The figures marked a significant improvement from the prior three years when revenue for the foreigner-only properties, which include those run by Grand Korea Leisure under the Seven Luck brand and Paradise Co. under the Walker Hill brand, had been largely flat.

The NGCC gave no commentary in releasing the figures. It said the number of properties in the country, including Kangwon, was 17.

Overall gaming revenue in the country, which also allows betting on horses, boat racing, cycling, lotteries and bullfighting, rose 3 percent to KRW223.9 trillion.

The foreigner-only casinos were by far the best-performing category, with most others posting declines from the prior year. However, revenue from Sports Toto gained nearly 13 percent and lottery revenue was up 5.5 percent.

The foreigner-only casinos were by far the best-performing category, with most others posting declines from the prior year.

The figures show the strong reliance of South Korea’s gaming section on foreign tourism, which has suffered from rocky relations with its giant neighbour China. Beijing turned off the visitor taps in 2017 after Seoul chose to deploy a U.S. antiaircraft missile system, sending revenue in the casinos tumbling. Visitation was also hit in 2015 after an outbreak of Middle Eastern Respiratory Syndrome also sent tourism numbers into a tailspin.

Visitors to foreigner-only casinos in 2018 rose to 2.8 million from 2.2 the prior year, while at Kangwon Land fell to 2.8 million from 3.1 in 2017.

A country-by-country breakdown of the tourism statistics last year shows that the fastest-growing segment was from Vietnam, with arrivals up 41 percent. However, arrivals from Japan, Taiwan and Malaysia also showed strong growth, up 27 percent, 20 percent and 24 percent respectively.

Although the NGCC only releases annual figures, the listed operators do release quarterly earnings and monthly revenue figures. So far this year, they have proved a mixed bag.

Paradise Co said it saw its casino revenue increase 19 percent in the first half yearon-year, driven by a 19.8 percent increase in table games revenue, along with an 8.1 percent increase in gaming machine revenue.

The figures include results from the operator’s four casinos in the country, including Walker-hill, Jeju Grand, Incheon Paradise City, and Busan Casino. The company also operates the country’s first IR, the Incheon Paradise City, which it runs in a joint venture with Japan’s Sega Sammy.

Opposition calls for second locals casino

An opposition party has called on the government to allow the development of a second casino in South Korea that would allow locals to gamble as a means of boosting tourism in North Jeolla province.

Korea Bizwire reports the opposition Bareunmirae Party’s North Jeolla branch brought up the subject in a statement on May 30 welcoming the Ministry of Oceans and Fisheries’ plan to designate the Saemangeum area as a special zone for marine leisure and tourism.

“Building a casino will become a turning point for growth in North Jeolla Province,” the party was cited as saying. “We ask North Jeolla Province, Gunsan, and local politicians to concentrate the effort on turning the Saemangum area into an international destination for marine leisure and tourism, just like Darling Harbour in Sydney, Australia and Marina Bay Sands in Singapore.”

A prior suggestion for a similar project was suspended in 2016 after public opposition, the news wire says.

Kangwon Land seeks global distribution for slots range

Kangwon Land has developed its own range of slot machines and is planning to distribute its products globally, beginning with the Philippines.

The operator, which runs the high1 resort, expects gaming machines to become a major part of its business, with potential investment in the hundreds of millions of dollars, Andy Jeon Jongsun, deputy general manager of the EGM business and Raymond Choi, executive producer and general manager said during an interview at G2E Asia.

Kangwon Land’s resort is the only one in South Korea where locals are allowed to gamble and it makes more revenue than the other foreigner-only operators combined.

The company is cash-rich with about $3 billion on hand. “We just need to convince the directors it’s the right way to go and if they think the same way as we do there shouldn’t be a problem at all,” Choi said, referring to financing.

The executives said they expected to be ready for full-scale investment in about three years.