Mohegan Gaming and Entertainment (MGE) has revealed that it will delay the groundbreaking on its $1.6 billion Mohegan Sun casino in South Korea—originally planned for this month—until next spring. This will give MGE and its partners more time to obtain permits for the project, which will be build adjacent to the Incheon International Airport, near the capital of Seoul.
It would also give MGE its first casino outside of the United States. Its flagship property is in Connecticut, and also operates casinos in Pennsylvania, Louisiana and New Jersey.
The Project Inspire Integrated Resort will include a foreigner only casino. It will have three hotel towers with 1,350 rooms, a 15,000-seat arena, a theme park, dining, retail shopping and a convention space. It will be built in the Incheon Free Economic Zone (IFEZ.)
The first phase will cost an estimated $1.6 billion, with multiple phases over two decades that will cost an estimated $5 billion. Other partners include the chemicals manufacturer KCC Corp. and Incheon International Airport Corp,
Kevin Brown, chairman of the Mohegan tribe, told the Day that permitting, rather than the war of words between the U.S. and North Korea was the prime motive for the delay.
South Korea is in the midst of a government program to lure foreign investment and tourists. Increasing the number of casinos from 17 to more than 20 by 2020, is part of that program. Making Incheon into a hub for regional business and tourism fits into that program.
Last week the Mohegan Sun hosted the mayor, Yoo Jeong-bok and a dozen other officials from Incheon, including a top official of IFEZ, John Kim, for a tour of the casino. Together they signed a non-binding cooperation agreement with the tribe. Brown called the agreement, “a significant demonstration of our continued partnership,” in his interview with the Day.
Brown told the Day, “We had him for about a day. We brought him to Mohegan and gave him the same tour we give most officials and guests of everything we offer at Mohegan Sun.”
According to Brown, IFEZ is divided into three districts. One of these, Yeongjong is the island where the Inspire Resort will be built. The land is owned by the Incheon International Airport Corp.
To carry it forward into international territory, MGE in October added Mario Kontomerkos as its new chief executive officer.
