S.Korea’s Paradise says May casino sales fall 14.3 percent

Friday 3rd of June 2016

South Korea’s foreigner-only Paradise Co. said casino sales in May fell 14.3 percent to 59.8 billion won ($51.2 million).

Table games, which make up the bulk of the revenue, declined 14.8 percent to 56.6 billion won, while machines were down 2.6 percent to 3.1 billion. In the first five months of the year, casino sales fell 6 percent to 253.9 billion won.

The table drop generated in May at its four casinos fell 18.6 percent year-on-year to 411.54 billion won. The drop was also down 0.9 percent from the prior month. The company said in the first five months of this year, the drop fell 8 percent to $2.1 billion won.

The company owns the Walker-hill, Jeju Grand, Incheon and Busan casinos. The casino division makes up 85.8 percent of consolidated sales.

Paradise and the country's other foreigner-only casino, Grand Korea Leisure, have been hurt by China's crackdown on corruption that has affected VIP traffic. Last year, profit was hit by an outbreak of Middle Eastern Respiratory Syndrome, which caused the country's tourism industry to slump. The slowdown highlighted the risks of operating a property in which locals are not permitted to gamble.

Paradise also said its new property being built in conjunction with Japan’s Sega Sammy is scheduled to open in April 2017.

The resort, which is 10 minute-walk from the Incheon International Airport, will have MICE facilities, a 711-guest room luxury hotel, South Korea’s largest casino for foreigners and a convention hall. It will also function as a major center for promoting Korean culture—for example, by providing Korean pop culture content through live events at a culture hall.

Construction on the 330,000 square metre site, which is being billed as the country’s first truly integrated resort, began in November 2014.