Inside Asian Gaming

inside asian gaming JUly 2015 12 Feature In Focus Gaming Authority (MGTA), which operates integrated resorts in the northeastern US under the Mohegan Sun brand, announced details late last month of a partnership with the Incheon International Airport Corporation to build an IR that could cost up to $5 billion adjacent to the airport’s second phase that would include a private air terminal. Korea’s second largest foreigners-only operator, Grand Korea Leisure (GKL), partially owned by the government’s Korea Tourism Organization, expressed interest in an IR license but announced nothing further. A source in Korea says Macau’s Galaxy Entertainment Group and Melco International, the Lawrence Ho-controlled vehicle that’s a partner in Melco Crown, investigated projects, while other Macau operators were “sniffing around.” Korean language media reportedly named Galaxy and Cambodia’s NagaCorp among 34 license applicants meeting the 30th June deadline, but the companies haven’t confirmed whether that’s the case. For casino developers, South Korea might be a winning play or a bad bet. Last year, revenue at the country’s 16 foreigners-only casinos increased a mere 0.3% to KRW1.36 billion, while revenue at Kangwon Land jumped 10%. For the first quarter of this year, Grand Korea Leisure (GKL) reported overall revenue rose 7% but profits fell due to a sharp rise in “non-operating expenses,” which appear to be promotional costs. Paradise reported its first quarter gaming revenue fell 11.6% year on year, with table drop down 22.7%. The slowdown in growth appears tied to China’s sluggish economy, President Xi Jinping’s anti- What’s a Nice Tribe Like You Doing in a Place Like This? Mohegan Tribal Gaming Authority President Bobby Soper says the Native American casino operator of Mohegan Sun integrated resorts in Connecticut and Pennsylvania is a natural, if unlikely, fit for an integrated resort in South Korea. “The vision of the Korean government for IRs is what we’re good at: amenities other than gaming,” Mr Soper says. Native American operator Mohegan Sun offers IR experience to Korea Investors are betting that Chinese visitors will keep coming despite recent media warnings about the dangers of gambling in Korea, that Middle Eastern Respiratory Syndrome (MERS) will be a passing phenomenon as SARS proved to be for Hong Kong and Macau, and that visitors will be tempted to gamble more by better properties. “We believe our history, success and ability in creating a complete entertainment destination which incorporates a memorable and legendary ‘wow’ factor is exactly what they are looking for.” Mohegan Tribal Gaming Authority President Bobby Soper