The South Korean government has announced it will extend the operating license of state-backed casino resort Kangwon Land, the only locals gambling facility in the country. The term of the operating license will continue until 2045, a 20-year extension.
Due to the Covid-19 pandemic, Kangwon Land reported an annual operating loss of KRW431.6 billion (US$388 million) on a consolidated basis for 2020, for its first annual loss since its opened in 2000.
In return for the extended license, Kangwon Land must pay a higher tax rate. According to Inside Asian Gaming, the plan would see the current taxation model adjusted to apply a 13 percent direct tax on gross gaming revenue rather than the current 25 percent on profit before tax, increasing the effective rate charged on PBT to around 31 percent on a like-for-like basis, according to investment bank JP Morgan. Kangwon Land will continue to pay the same 10 percent standard gaming tax on GGR charged to all casino operators in South Korea.
Kangwon Land, located in remote Gangwon Province, reopened at 10 a.m. Monday, February 15, after a two-month shutdown due to viral outbreak.
