South Korea’s government has earned over $54b from gambling in the past 15 years, according to a new report.
On Wednesday, the Yonhap news agency reported that a Korea Taxpayers Association study of National Gambling Control Commission data indicated that the South Korean government has earned KRW 62.5t (US $54.5b) from gambling in the past 15 years, half of which came via taxes.
The biggest slice of the government’s gambling take came via horseracing, which accounted for 37.5% of the total. Lottery operations ranked second with a 25.4% share, while casinos claimed 12.3%. The remainder was split between the country’s only other legal forms of gambling: cycling and boat racing, sports betting and bull fighting.
The government’s take from casino operations will get a boost starting April 20 when Paradise City, the country’s first integrated resort, opens its first phase. While the property’s hotel and non-gaming amenities are open to all, its gaming floor remains off-limits to anyone not holding an international passport, in accordance with South Korean law.
Paradise City is a joint venture of South Korean casino operator Paradise Co Ltd and Japanese pachinko operator Sega Sammy Holdings, and both companies hope the resort’s launch will give their individual earnings a boost. But Forbes Asia’s Muhammad Cohen recently suggested that the resort is also intended as an advertisement for Sega Sammy’s domestic casino ambitions.
Japan is in the process of crafting legislation that will allow the development of at least two major integrated resorts and the competition to win one of these licenses is expected to be fierce. The government has hinted that international casino operators may need to partner with a local firm and Sega Sammy aims to be in the running one way or the other.
In 2012, Sega Sammy purchased the Phoenix Seagaia Resort on the Japanese island of Kyushu, and Sega Sammy boss Hajime Satomi freely admitted the deal was done at least partly to establish his company as more than just a pachinko operator for the day when Japan finally opened up its casino market.
Sega Sammy’s domestic pachinko rival Universal Entertainment Corp has taken a similar step via last month’s official launch of its Okada Manila integrated resort in the Philippine capital. But only time will tell if this international gaming experience will elevate Universal or Sega Sammy’s domestic casino chances above other casino-hungry pachinko operators.
