The largest South Korean casino resort, the Kangwon Land Resort, has just released their Q3 profits for 2016. According to the numbers, the only national casino resort in South Korea has had an even better year than 2015, noting a 4.5% rise in net income for its third quarter. The total net profit for the Q3 amounted to 124.3 billion Korean Wons, or $108.4 million, while the sales revenue reached KRW 438.1 billion, a 6% higher sum than the same period last year.
While other casino resorts are afraid of the losses that the new travel restrictions imposed by the Chinese government for tourists travelling to South Korea will bring, Kangwon Land is continuing to grow healthy. For the first nine months of 2016, the casino has seen their accumulated net profit grow by 12.1% as opposed to 2016, amounting to KRW 390.8 billion, 2.4% of which are owed to their first quarter.
Part of their success is likely owed to the fact that Kangwon Land is the only South Korean casino where locals are allowed to play, despite having 16 other casinos in the country. In fears of gambling addiction, the South Korean government has restricted its nationals from entering any other casino but the Kangwon Land and has still not backed down on the decision, despite protests from other resorts. However, its unfair advantage isn’t the only thing leading to its success.
According to Thomas Kwon, analysts from Daiwa Securities Inc, the steady growth is most probably due to the increasing numbers of recreational gamblers who frequent the “mass-table games” and slot machines in the casino. This, combined with the casino’s “disciplined cost strategy”is the key reason why Kangwon Land is predicted to continue growing in profits.
But despite the predictions, many question whether Kwangon Land will continue its success after the new government-inspired gambling regulations will be set in motion. According to their new plans, the casino will introduce higher entry fees and tighter time limits, which might take their local profits down.