South Korea’s government is unveiling a new tourism strategy this month that could see investment requirements lowered for companies looking to develop resort-scale casinos in specially designated economic development zones.
“We are considering easing the bidding standards after receiving complaints that it is too difficult to meet the criteria,” a government official told the English-language Korea Herald. “But we have yet to decide on detailed plans.”
The switch has prompted Caesars Entertainment and its partner, Indonesia’s Lippo Group, to renew their bid for a license, which was rejected last year, presumably over concerns about Caesars’ highly leveraged balance sheet.
With an eye on the current boom in leisure travel out of China the government particularly is looking to develop an economic zone at Yeongjondo near Incheon International Airport into an international tourist destination.
Universal Entertainment, which also was rejected, may also be looking for a way back in. The company controlled by machine gaming magnate Kazuo Okada recently purchased land in Yeongjong Sky City that industry sources identify as a bid to restart the licensing process.
PNC Financial Services, which owns U.S.-based PNC Bank, also wants in and has submitted a letter of intent to the government for a destination-scale resort casino.
To date, the only company approved to build a casino at Incheon is Korea’s own Paradise Group, the country’s largest private gaming operator. Paradise is partnering with Japan’s Sega Sammy Holdings on a megaresort and plans to start construction in April with completion slated for 2017.
