Caesars Entertainment Corp is finally expanding into the Asian market with a preliminary approval for a large scale casino and resort complex in Incheon, South Korea. The project will be a built by a consortium including Caesars of Las Vegas, OUE Ltd of Singapore, and Hong Kong Based Lippo Ltd.
Like all of the casinos in South Korea with the exception of Kangwon Land Resort & Casino, the facility will only be open to foreign visitors. The close proximity to China as well as the volume of Japanese visitors who already come to South Korea to gamble, indicate that the 2.3 trillion won ($2.2 billion) investment stands a good chance succeed.
It should be noted that Japan may soon normalize laws for gambling within its own borders and about 33% of foreign gambling revenue in Korea currently comes from that country. There are currently 17 casinos in South Korea and about half of all revenue is generated at the Kangwon Land Resort & Casino which accepts bets from local and foreign players.
The casino complex is one of several mega-resorts that will be competing for business. Genting Singapore along with Landing International Development of China plan to build on Jeju Island. Paradise Entertainment Limited has partnered with Japan’s Sega Sammy Holdings Inc., and plans to build a $1.7 billion resort in Incheon.
Caesars missed the fast-boat to Asia when they failed to get a foothold in Macau a decade ago. Macau now dwarfs Las Vegas with about $46 billion in annual revenue.