Policy could open the door for locals on land
The government of South Korea may have a hard time getting proposed offshore casinos into the water.
According to GGRAsia, critics say the planned casino cruises would amount to a reversal of the longstanding policy against gambling for locals. Of South Korea’s 17 casinos, only one remote casino allows Korean nationals to play.
But the country’s maritime minister says strict rules will govern the casino cruises. According to the Yonhap News Agency, Minister Yoo Ki-june says locals would only be allowed to gamble six hours a day while the ships are in international waters. And betting would be limited to less than US$100 for a five-day trip.
Leading the opposition is the operator of the land-based locals casino, Kangwon Land Inc. Yonhap reported that residents of Jeongseon, where the casino is located, plan to protest if the cruise ships are approved.
“The government established the casino that serves locals in the abandoned mining town for the special purpose of helping former miners and boosting the local economy,” Kangwon Land CEO Hahm Seung-heui said. “If gambling is banned on land, it should be banned at sea… If the government expands casinos to foster a certain industry, even hundreds of casinos will be not enough in this country.”
Yoo responded that South Korean citizens are already gambling aboard foreign cruise ships. “I think locals need to be allowed to gamble on Korean cruise ships to let them fairly compete with foreign cruises that sail here,” he said. “Cruise ships can boost the domestic economy and create jobs, and with casinos, they can raise more profits.”
The Korea Herald quoted an anonymous “insider” who said if locals are allowed to gamble at sea, integrated resorts being built near Incheon Airport and on Jeju Island would “call for equal treatment.”
As the debate goes on, two possible cruise ship operators include Grand Leisure Korea Ltd., which runs land-based casinos in the country, and South Korean bulk carrier operator Pan Ocean Co. Two other cruise operators are said to be looking at partnerships with foreign investors. GKL is majority-owned by the state-operated Korea Tourism Organization.
Analyst Lee Seon-ae of IBK Investment and Securities said, “Challenges lie ahead for cruise casinos due to a lukewarm response from the culture ministry and strong opposition from residents in Gangwon Province.”
Yoo agreed, saying, “We will consult the culture ministry on the matter as there are concerns over gambling addiction. The plan cannot go ahead when there are many opposing voices.”
Worldwide, the number of cruise tourists is expected to grow to 37 million by 2020, 43 percent more than the 20.98 million recorded in 2013, according to a report by the maritime ministry cited in GGRAsia.
