Foreign Casinos Overcoming Darkness... Expectations for "Year of Rebound" This Year

GKL Turns Profitable After 4 Years Since COVID-19
Paradise Also Forecasts Significant Operating Profit Increase
Inbound Foreign Tourists Expected to Rise Sharply
New Competitor Inspire Emerges as a Variable

The foreigner-only casino industry has successfully rebounded in performance after COVID-19 due to an increase in foreign tourists following the transition to an endemic phase (periodic outbreak of infectious diseases).

Grand Korea Leisure (GKL), which operates Seven Luck, announced on the 14th that its consolidated operating profit last year was 51 billion KRW, turning profitable compared to the previous year (operating loss of 13.9 billion KRW). This is the first time in four years since 2019 that GKL has recovered from an operating loss to record a profit. Sales increased by 51.3% year-on-year to 396.7 billion KRW, and net profit turned positive at 43.8 billion KRW.

Seven Luck Casino [Photo by GKL]

Specifically, the drop amount (the amount customers spent to purchase chips) rose by about 70% to 3.3943 trillion KRW from 1.9872 trillion KRW the previous year, and the number of visitors nearly doubled to 789,000 from 409,000. In particular, the number of Japanese visitors increased nearly sevenfold to 224,000 from 33,000 the previous year.

A GKL official analyzed, "Compared to the average cumulative sales and visitors over the three years from 2017 to 2019 before COVID-19, last year's sales were about 81% and visitors about 54%. Although we have not yet fully escaped the impact of COVID-19, we are recovering." He added, "We believe that VIP customers, who contribute significantly to sales, engaged in revenge spending by enjoying casino games after being unable to do so due to COVID-19."

Paradise, which is scheduled to announce its annual preliminary results on the 15th, is also expected to post an operating profit of 164.4 billion KRW, a 1479% increase from the previous year's operating profit of 10.4 billion KRW. Sales are expected to rise 69.1% year-on-year to 993.5 billion KRW. Additionally, Lotte Tour Development, which operates the Jeju Dream Tower complex resort, recorded an operating loss of 60.6 billion KRW, about a 50% reduction from the previous year's operating loss of 118.7 billion KRW, due to the increase in foreign tourists.

Related industries, including the securities sector, expect the foreigner-only casino industry to accelerate its performance recovery this year. This outlook is based on the increase in foreign tourists visiting Korea and the potential expansion of the Chinese group tour market compared to this year. However, the opening of the new foreigner-only casino Inspire on Yeongjong Island, Incheon, starting from the 3rd, introduces a variable as competition for customer attraction intensifies within the same industry. A casino industry official said, "Due to the open premium from the opening of Inspire Casino and aggressive marketing, it is expected to absorb a significant number of competitors' customers," adding, "Maintaining mass (general) customers is the key."

This content was produced with the assistance of AI translation services.