South Korea’s gambling tax revenue rose by 4 percent in 2015 amid persisting weakness in the Asian gambling sector.
Thanks to the gambling sector’s increased sale, the Asian country bucked the regional downward trend of gambling tax revenues and posted a KRW2.42 trillion (US$2.06 billion) profit in 2015 from KRW2.32 trillion (US$1.98 billion) in 2014.
Citing statistics from South Korea’s National Gambling Control Commission, Yonhap News Agency reported that the tax revenue from the gambling sector increased last year as its sales grew 3.1 percent year-on-year to KRW 20.5 trillion (US$17.47 billion).
South Korean government’s total gaming tax intake were collected from all gambling related businesses, including casinos and horse race betting.
Data from the gambling commission shows that tax revenue from casinos surged 12.1 percent on-year to 478.8 billion won (US$408.82 million).
South Korea currently has 17 casinos, but the country’s nationals are only allowed to gamble at one of them – Kangwon Land, located 150 kilometres (93 miles) southeast of Seoul in Kangwon province.
By next year, South Korea’s casino sector will get additional boosts with the opening of Paradise City. Jointly-owned casino operator Paradise Co Ltd and Japanese pachinko operator Sega Sammy Holdings Inc, Paradise City is said to be the first large-scale, foreigner-only gaming resort in the country.
The Mohegan Tribal Gaming Authority-led Inspire Integrated Resort, which will also feature a large-scale, foreigner-only casino, is set to be constructed in Incheon, near Seoul and will begin operations by 2020.
Meanwhile, the South Korean government saw its profits from horse betting rise by 1.6 percent to 1.45 trillion won (US$1.24 billion) while taxes collected from betting on bicycle racing rose 5.1 percent on-year. South Korea also posted a 300 percent increase in tax revenues from bullfights.
On the other hand, tax revenue from betting on motorboat racing dropped 0.9 percent.
Sales of the South Korean gambling industry have been on a steady rise over the past year. Last year’s sales grew 1.7 times from those in 2006.
Industry experts, however, warned that the tax revenue from the gambling industry may decline this year as the government has announced a series of tax increases on betting on horse racing, bicycle racing and motorboat racing.
