South Korea’s gambling revenue rose in 2014, the ninth consecutive year of annual growth, but the rate of growth has been slowing over the past couple years.
Total sales of all legal gambling products – casinos, lotteries, racing (horse, cycling and boat) and bullfighting – hit KRW 19.87t (US $17.6b) in 2014. That figure is up 1% from 2013’s tally, which was up only 0.6% from 2012. The previous two years had enjoyed growth of 6.5% and 5%. The Yonhap news agency quoted government officials saying the expectation is for gambling revenue to top KRW 20t in 2015, driven largely by the lottery and casino sectors.
Horseracing earned the lion’s share (KRW 7.64t) of 2014’s gambling revenue, but this was down 0.7% year-on-year. Betting on cycling and boat races also fell for the third straight year. Lottery ticket and sports betting revenue each topped KRS 3.28b, up 1.4% and 6.5% respectively.
The nation’s 16 foreigner-only casinos reported revenue up 0.3% to KRW 1.36t ($1.2b). South Korean casinos have become increasingly popular with Chinese tourists, prompting Chinese media to quote government officials complaining that casino hubs like Jeju Island were becoming the “new haven” for Chinese gamblers.
Kangwon Land, the only South Korean casino that admits local residents, enjoyed a far healthier 2014, with revenue rising 10% to KRS 1.4t, more than the other 16 casinos combined. While locals doggedly make the trek to Kangwon Land’s remote location, the casino reported that its ranks of Chinese visitors quintupled after the local Yangyang International Airport received permission to offer visa-free visits last April. Kangwon Land’s net income rose 70% in Q4.
