The gambling field in South Korea is one of the more developing in the region as almost all of its casino properties with the exception of one gambling facility focus on foreign tourists only. Jeju Island is the home of MegaLuck Casino which recently issued its revenue report for the year 2017 and as it became clear by it, the facility generated an annual deficit amounting to about $4.43 million over the span of those 12 months.
The casino operator which oversees the management of MegaLuck Casino at Jeju KAL Hotel is New Silkroad Culturaltainment Ltd. and the company also takes care of the management of real estate development in China. According to the information listed in the company financial results over the twelve months of 2017, there was a significant operating loss in the foreigner-only gambling facility, which amounted to HK$26.9 million. The negative figures come as a considerable drop after only a year earlier, back in 2016 the gambling venue marked a profit reaching HK$3.6 million.
When it comes to the overall group loss for 2017 there was an improvement, as figures reached HK$71 million. When compared to the loss generated over the span of 2016, which amounted to HK$92.5 million, this is an improvement and a step in the right direction which came as a result of the considerable decrease in share-based payment expenses. On the other hand, the gaming revenue of MegaLuck Casino witnessed a 68.3 percent surge, as the location managed to amass some HK$123 million in 2017.
Causes for Casino Operation Deficit
The reason for this positive jump was because of successful direct marketing and promotion efforts which, in turn, resulted in more visitors. The gambling venue located in Jeju KAL Hotel has on offer as many as 19 Baccarat tables, one Blackjack table, one Cussec table, one Roulette table, 6 Texas poker tables, one three-card poker table and 24 slot machines. Out of the 18 casino facilities which are in operation at the moment, only the well-known Kangwon Land Casino & Hotel allows local players to enter the premises and participate in casino activities.
It could be recalled that March 2017 saw China’s ban on all group tours to South Korea after the decision of the latter’s neighboring country to install the US Terminal High Altitude Area Defence System (THAADS). Later on, in November 2017 the Chinese travel agencies’ executives and the deputy director at Korea Tourism Organization revealed that only over-the-counter package tour sales from Shandong and Beijing to South Korea are to be permitted by China National Tourism Administration.
This partial lift of the initial ban resulted in the slight boost of the gambling industry in South Korea, but at the end of the year, the figures were still far from the initial expectations. This has impacted the operation of New Silkroad Culturaltainment as well and as a result, the group is looking for ways to explore new markets as well.
There has also been information given regarding a future integrated resort project, which is going to be located on the Jeju Island. With the help of other international gambling businesses, the casino developer is looking forward to making its plans reality.
