Kangwon Land, operator of the only casino in Korea in which locals are allowed to gamble, has reported a 6.5% decline in gaming revenue and 10.7% net profit fall for 2Q17 – the results attributed to the company opening fewer tables as it looks to sneak under the radar of Korean regulators.
In its second quarter earnings report released this week, Kangwon Land declared total gaming sales KRW375 billion (US$327.7 million) for the three months to 30 June, down from KRW401 billion over the same period last year and from KRW393.3 billion in 1Q17.
Revenue from mass market gaming tables fell 9.3% to KRW167.3 billion with slot machine revenue down 6.3% to KRW140.5 billion, however JP Morgan analysts DS Kim and Sean Zhuang observed that Kangwon Land had been looking to “adjust revenues lower amind regulatory scrutiny”, with only 130 gaming tables and 1,100 to 1,200 slots active, well below the 145 tables and 1,300 slots operational through much of 2016.
Notably, the lower gaming revenue wasn’t reflected in visitation, which remained relatively stable year-on-year while non-gaming revenue grew 11.1% to KRW12 billion.
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