South Korea’s domestic gambling industry hit the wall in 2013, showing signs of stagnation after seven years of growth. Figures released by the Korea Leisure Industry Institute show gambling revenue – excluding bullfighting and the 16 foreigner-only casinos currently off-limits to locals – came to just under KRW 18.3t (US $18b) last year, about what it brought in during 2012. The number of visitors patronizing racing venues (horse, bicycle and boat) and the lone locals-allowed Kangwon Land casino fell 5.5%, continuing a downward trend that began in 2010.
Betting on cycling races fell 7.4% to KRW 2.3b, while cycling’s share of overall gambling revenue dipped one point to 12.6%. Boat racing revenue fell 4.3% to KRW 692b. Lotto revenue rose 1.5% to KRW 3.2b, while lotto’s share of the overall pie was basically flat at 17.7%.
Gambling turnover at Kangwon Land rose 5.8% to KRW 1.3t ($1.3b) thanks to last year’s addition of 400 slot machines. Since 2009, Kangwon Land’s turnover has risen 10.7%. The number of visitors to the casino rose 1.4% to just over 3m last year, despite its location in a former coal mining town in a remote mountainous region over 200km from Seoul, making getting there an only slightly more arduous trek than journeying to Mordor.
Kangwon Land opened in 2000 as part of an economic revitalization effort following the closure of the coal mine. It hasn’t been entirely successful, as the local population has fallen 40% since the loss of the mining industry. Still, the government-run resort casino employs some 3k South Koreans – 60% of them local residents – and contributes KRW 500b ($491m) in annual tax revenue.
South Korea is currently in the process of jumpstarting its casino industry by allowing foreign investment in large scale integrated resorts. Caesars Entertainment and Indonesia’s Lippo Group are planning a $2b project near the Incheon International Airport just west of Seoul, close to the site of Paradise SegaSammy’s ongoing expansion of Paradise Casino Incheon.
Further south, Genting Singapore and China’s Landing International Development are constructing a $2.2b facility on Jeju island. Other casino operators, including Las Vegas Sands, MGM Resorts and Crown Resorts have also publicly mused about South Korean possibilities. Not that locals will ever see the inside of any of these joints, mind you.
