Strong revenue results for South Korea’s casinos
The operator of South Korea’s foreigner-only casinos has seen its revenue sky rocket in August.
GGR Asia reports that Paradise Co’s August revenue’s rose by 762.1 per cent month-on-month to nearly US$51.4 million.
The August tally was a 244 per cent boost to what the company filed a year ago.
The surge in casino revenue has been driven by an increase in table revenue during August, the firm said.
In July, the company reported a dip in casino revenue coinciding with an uptick in COVID-19 infections in South Korea, a situation that at the end of July resulted in the authorities introducing so-called Level 4 social distancing protocols, the highest state of alert, for the Seoul and Incheon areas, two important operating markets for Paradise Co.
Table revenue increased by 1053.3 per cent month-on-month this August.
Judged year-on-year, August table revenue rose by 273.4 per cent compared to August 2020.
Machine game revenue was up 4.2 per cent from the previous month and up 5.3 per cent from the prior year.
The figures are based on the casino business division comprising Paradise Walkerhill in Seoul, Jeju Grand on Jeju Island, Paradise City at Incheon outside Seoul and Busan Casino in the southern port city.
Paradise Co reported higher casino revenue in August, despite the temporary shut down of its Paradise Casino Walkerhill for several days in August, as a countermeasure against COVID-19.
Paradise Casino Walkerhill was shut from August 14 to 17 due to confirmed COVID-19 cases on the premises.
That venue was paused again during August 21 to 24, as an effort to stem the spread of COVID-19.
Paradise Co’s aggregate casino revenue for the first eight months of 2021 was down 25.6 per cent on the same period in 2020.
Table revenue for January to August was down 26.6 per cent.
Table drop, the amount of cash exchanged for chips by customers at the table, increased by 28 per cent month-on-month in August.
Sales up at Grand Korea Leisure
Grand Korea Leisure has reported casino sales of US$7.6 million in August, a 16.3 per cent boost month-on-month.
Such sales however fell by 31 per cent from those achieved a year ago.
Machine game sales were up 7.8 per cent, while table games sales were up 18.4 per cent from July.
The company had reported a decline in casino revenue in July, as it paused casino operations at its two Seoul properties a few times during that month, as a pandemic counter measure.
Korea Exchange-listed Grand Korea Leisure is a subsidiary of the Korea Tourism Organisation, which in turn is affiliated to South Korea’s Ministry of Culture, Sports and Tourism.
The casino-operating entity runs three foreigner-only casinos in South Korea under the Seven Luck brand: two in Seoul and the other in Busan.
In the first eight months of 2021, Grand Korea Leisure’s casino sales were down 64.6 per cent from a year earlier.
Aggregate sales for table games in that period were down 66.3 per cent, while machine game sales fell by 52.2 per cent.
Pressure is on to finish casino
Caesars Entertainment is racing to finish an integrated resort project in South Korea or risk forfeiting its licence.
Casino.org reported in February that the casino giant is rushing to finish its Midan City resort on Yeonjong Island.
Construction of the $700 million project has been halted since February 2020 because of the coronavirus pandemic.
The Nevada-based gaming company has committed $140 million to the project and is partnering on it with China’s Guangzhou R&F Properties.