• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 31 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

Editorial: Does the foreigner-only casino model work?

Ben Blaschke by Ben Blaschke
Thu 28 Apr 2022 at 15:28
Oz Casinos: What now?
51
SHARES
1.3k
VIEWS
Print Friendly, PDF & Email

The COVID-19 pandemic, along with the international border closures it forced, is one of a number of recent headwinds to have thrust the issue of foreigner-only casinos into the spotlight.

And while it is perhaps too much of a stretch to make the blanket claim that the foreigner-only casino model is doomed, the health crisis certainly lends weight to the argument that such a path is shrouded in risk for both operators and the governments that invite them in.

The issue is particularly relevant right now given Thailand’s moves to investigate legalizing casinos, with some industry observers suggesting foreigner-only may well be the direction in which Thailand eventually heads.

In a recent interview with Inside Asian Gaming, Bernstein analyst Vitaly Umansky stated bluntly, “Foreigner-only doesn’t work.

“I mean sure, you can do a US$200 million property in Phuket and that will make a lot of money, but that’s not what the government is going to allow,” he said. “They’re going to want you to build a US$5 billion property catering only to foreigners and with an absurd tax rate – and none of it will ever pan out.”

Done right, foreigner-only casinos can be profitable. In South Korea, home to 16 foreigner-only casinos, industry-wide quarterly gaming revenue reached as much as US$348 million back in 2014, aided by the country’s proximity to China.

But Korea has also shown itself to be particularly vulnerable to regional headwinds, as evidenced by the impact of the 2015 MERS (Middle East Respiratory Syndrome) outbreak and an economic downturn in China that saw quarterly gaming revenues at Korea’s foreigner-only casinos fall to around US$250 million. The industry took a further hit that same year when Chinese tourist arrivals halved due to political tensions between the two nations.

COVID-19 has only exacerbated the problem, with the country’s leading foreigner-only operator, Paradise Co, reporting a US$20 million loss in 2021 coming off a US$39 million loss in 2020. Its main rival in the space, Grand Korea Leisure, recently reported a US$94 million loss for 2021.

It’s no doubt with this in mind that US tribal casino operator Mohegan Gaming & Entertainment is pivoting its US$1.5 billion Inspire Korea development in Incheon – due to open in 2023 – away from a gaming focus, describing it instead as an “entertainment destination.” It has even rebranded the IR “Inspire Entertainment Resort”.

“Fundamentally, the core of this project is non-gaming, so we are going to be able to leverage the significant population locally with these non-gaming amenities which are driving the business model,” Mohegan’s International President Bobby Soper explained recently.

Similar challenges are facing the industry in Vietnam, where a pilot program allowing gaming by locals in selected casinos has thus far not been extended to the large integrated resorts most in need of local patrons, such as Ho Tram and Hoiana. This is despite the Vietnamese government having long required foreign investors to commit a minimum of US$2 billion if they hope to be rewarded with a casino license – an amount far exceeding anything they could expect to earn back without the benefit of locals.

As we are already witnessing across Asia, casinos supported by strong domestic markets – the likes of the Philippines, Australia and to some extent Singapore – are already showing encouraging signs of recovery. The road back looks considerably longer, however, for those relying solely on foreigners.

Amid reports that Thailand may be considering a multi-billion-dollar integrated resort development in Bangkok, that’s a lesson the government would be well advised to heed.

Ben Blaschke
Managing Editor

We crave your feedback, please email your comments to bb@asgam.com.

RelatedPosts

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

Fri 30 May 2025 at 05:38
Casino Filipino venues to receive first delivery of almost 2,000 new slot machines by mid-September

PAGCOR board, including Chairman Tengco, tender courtesy resignations following Presidential call

Thu 29 May 2025 at 14:15
Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

Thu 29 May 2025 at 13:38
On the brink

On the brink

Thu 29 May 2025 at 13:27
Load More
Tags: AustraliaBobby SoperCurrent IssueGrand Korea LeisureHo TramHoianaMERSMoheganPhilippinesSingaporeThailandVitaly Umansky
Share20Share4
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian gaming industry. That’s quite a wide-reaching question with dozens of moving parts, but it got me thinking specifically about how...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry and why the latter is vital in winning over sentiment. When I was corresponding with this publication’s Managing Editor Ben...

Scientific Games among two new lottery suppliers granted UAE vendor licenses

Scientific Games among two new lottery suppliers granted UAE vendor licenses

by Newsdesk
Wed 28 May 2025 at 06:06

Global lottery giant Scientific Games is one of two companies named as the UAE’s latest gaming-related vendor licensees by the General Commercial Gaming Regulatory Authority (GCGRA). The regulator updated its list of approved licensees this week, with Scientific Games International...

Editorial – Knife’s edge

Editorial – Knife’s edge

by Andrew W Scott and Ben Blaschke
Tue 29 Apr 2025 at 15:14

Thailand’s Entertainment Complex journey is at a critical point, with the success or failure of the initiative to be determined by decisions made over the coming months. The common narrative now appears to be that legislation governing development of the...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English