U.S. tribe in play, Sands interested
Almost three dozen companies are competing for two licenses to build and operate foreigners-only integrated casino resorts in South Korea, according to the Korea Times. The Ministry of Culture, Sports and Tourism is expected to announce the locations this month—Incheon and Seoul are the probable choices—after which the selection process will begin. Winners are expected to be chosen by December, said a ministry official.
Asia Gaming Brief reports that LOCZ Korea, a Chinese-U.S. consortium of Lippo and Caesars Entertainment, won approval to open a foreigners-only, casino resort on Yeongjongdo Island. And Korean operator Paradise, which now runs five casinos in South Korea, will build its Paradise City resort complex near Incheon International Airport with Japanese partner Sega Sammy.
Presently, there are 16 foreigner-only casinos in Korea and one casino open to Korean nationals. The foreigners-only casinos posted combined revenue of 1.37 trillion won (US$1.1 billion) in 2013 thanks to 2.7 million foreign gamblers. The revenue is projected to exceed 1.5 trillion won this year due to increased tourism.
The U.S.-based Mohegan Tribal Gaming Authority is also in the running to build a casino in South Korea, which would require a minimum investment of 1 trillion won (US$890 million). The gaming arm of the Mohegan tribe, which runs Mohegan Sun in Connecticut and other gaming properties on the East Coast of the U.S., announced in April that it was proposing a casino in South Korea in partnership with Incheon International Airport Corp. The so-called Inspire resort is expected to have 1,500 slot machines and 250 gaming tables. The company has said the initial phase of the project would generate around US$1.6 billion for South Korea in terms of direct foreign investment. Once the project is completed, it is expected to create around 24,000 jobs for the South Korean market.
The World Casino Directory has reported that the tribe is expected to spend around US$320 million for the entertainment arena, US$140 million for a planned theme park and US$35 million for a private air terminal.
Bloomberry Resorts also is in the game, having purchased land on two islands near Incheon Airport in a bid for one of the licenses. The Philippine company controlled by billionaire Enrique Razon Jr. plans an integrated resort that would include an all-weather waterpark and amphitheater staging recreations of historic Korean battles.
Las Vegas Sands has looked at the market too, and says it would be all in if nationals were allowed to gamble.
On the more modest side is a proposed resort in the Noryangjin Fish Market in Seoul, to be developed by the National Federation of Fisheries Cooperatives.
