Korean Casinos: A new Hype in the Industry
An integrated resort for foreigners-only in South Korea’s Incheon Airport was awarded a license in February 2016 to the Mohegan Tribal Gaming Authority and partnered with KCC Corporation. Incheon International Airport Corporation branded Project Inspire requiring an overall commitment of US$5bn. Bloomberg quoted Incheon Airport Official Lim Byung Kee saying: “We have benchmarked Resorts World Sentosa in Singapore for the integrated resort project here, a year prior to the Korean Government giving the license.” Due to the short distance, we want to attract more Chinese tourists. For tourists who want to enjoy themselves in Korean Casinos, North Korean Casinos are jus like the perfect spot for them.
Korea- The land of casinos
South Korean casinos have had several recent financial success stories as well. Grand Korea Leisure Co Ltd, the country’s second-largest foreign-only casino operator, had its net income rise 38.1% in the second quarter, while Kangwon Land’s revenue increased 9.2% in 2015 to US$1.3bn.
It’s important to remember that only six applications had been submitted by the deadline of November 30th, 2015, with Galaxy Entertainment and Melco Crown among those to withdraw. Project Inspire’s plan was the only one submitted to the Korean government that included a $50 million investment and a mix of gaming and non-gaming elements.
Integrated resorts will not be as successful as other integrated resorts that allow locals to gamble if they are restricted to foreigners only status. It’s unlikely that the People’s Party, South Korea’s minority opposition party, will reverse course on the issue of opening a second casino in Kang-won Land that would allow people to gamble in 메이저사이트(major site).
The regulated sports betting industry in South Korea, on the other hand, is highly unlikely to be relevant here.
According to numbers given by Macau’s Gaming Inspection and Coordination Bureau, the drop in Macau’s gross revenue from games of fortune has lasted 26 months as of July 2016 (although this now appears to have turned around following three months of growth).
When it comes to income creation, VIP baccarat is Macau’s most popular and most lucrative game, generating 127.8 billion patacas in 2015, a 40% year-over-year decline. According to Govertsen, though, this hasn’t helped South Korea all that much: “It is crucial to remember that VIP gaming patterns in Korea have generally paralleled those in Macau, notably they have witnessed major decreases over the last two years.” Locals and visitors to South Korea who wish to gamble online should know that casinos and sports betting remain high-risk ventures. Since most land-based casinos cater to tourists and long-term expatriate residents, gambling is still strictly banned in South Korea.
Gambling is strictly regulated in South Korea. Legal gambling in Korea is restricted to the Kang-won Land Casino outside of Seoul. The Special Act safeguards locals at Kang-won Land Casino on the Assistance to Development of Abandoned Mines. Authorities closely monitor all online gambling activities, making it illegal to place bets with sportsbooks in other countries.
Seventeen persons were arrested for two internet sports gambling rings in Busan, South Korea; authorities reported earlier this week. Police in Busan think that two gangs had amassed bets totaling USD 795 million from the city’s residents. An indictment has been filed against them for allegedly breaking the National Sports Promotion Act (NSPA).
Korea has legalized gambling.
Authorities in Korea have revealed that they have taken down two rogue online gambling networks in the Busan area.
Korean law regulates all forms of gambling by South Koreans both at home and abroad, regardless of where they are located. Nevertheless, tourists and expatriates can legally gamble at any of the country’s casinos. Korean Law does not apply to non-Koreans overseas (unless for the most significant offenses).
Instead, only an isolated upland resort several hours away from Seoul, Kangwon Land, enables inhabitants to bet. Several investment analysts believe that the new large-scale South Korean resorts’ inability to provide gaming to the country’s residents may constrain their earnings.
GGR-Asia spoke to Christopher Jones of Mohegan Gaming and Entertainment. He said that the possibilities for such resorts remained bright due to a significant foreign player pool adjacent to South Korea.
Many of the world’s most populous cities are within a three-hour flight of either South Korea or Japan.” The desire for integrated resorts in South Korea and Japan, according to Mohegan Gaming’s vice president of corporate finance, is vital from a market viewpoint and because of the countries’ proximity and convenience.
There are two casino operators, one based in the United States and one in South Korea, both investing in and building casino resort projects near the country’s primary international airport serving Seoul.
The first phase of Mohegan Sun’s Incheon casino resort, dubbed Inspire Entertainment Resort, is scheduled to open in the fourth quarter of 2021 and cost US$1.6 billion. Multiple phases spanning two decades will require a total investment of $5 billion.
The developer of another project, Jeju Dream Tower — a resort with a casino open only to visitors from outside Korea – plans to finish the high-rise component of the project by the end of this year on the South Korean tourist island of Jeju.
Beyond Japan, regional competition for South Korea’s new resorts will be fierce. Union Gaming Securities Asia Ltd. reported in May that current economic growth rates in Asia would not support the US$65 billion currently budgeted for new casinos in the region – two-thirds of the money for existing gaming jurisdictions and the balance for Japan’s emerging market.
When it comes to Korea, our operations will have a few years to develop before we face the opening of our Japanese operations, which should allow for a more regionally diversified mix of clients in Korea, according to Mr. Jones from Mohegan Gaming.
“We see a variety of benefits over other Asian regions in our Korean business,” he continued. According to the Mohegan Gaming CEO, “from our perspective, we don’t see the supply envisaged for the region as having a negative influence on the total return on investment.”