South Korea’s leading foreigner-only casino operator, Paradise Co., reported an 11.6% year-on-year decline in casino revenue in the first quarter to KRW133.3 billion (US$122.2 million).
Table game revenue fell 12.9% to KRW124.6 billion, on the back of a 22.7% reduction in table drop to KRW1.1 trillion. Machine gaming revenue, meanwhile, was up 12.2% to KRW8.8, accounting for 6.6% of total casino revenue in the quarter.
Paradise operates five foreigner-only casinos in South Korea, including its current flagship, Walkerhill.
The company is in the process of significantly expanding its operations. In a joint venture with Japanese gaming machine manufacturer Sega Sammy, it broke ground on the country’s first destination-scale casino resort, dubbed Paradise City, in November at a special economic development zone on Yeongjong island, the site of Incheon International Airport, the main gateway for foreign arrivals, located about 30 kilometers from Seoul. Paradise City is expected to open in 2017 at an initial cost of US$750 million. Meanwhile, Paradise also plans to expand the floor space at three of its existing casinos.
Paradise has a 50% share of Korea’s foreigner-only casino market, while Grand Korea Leisure, a state-run casino operator, ranks second with 42%. In 2014, Paradise reported an 8.7% increase in revenue, though profit was down 4.2%
