Foreigner-only casino in South Korea reports big losses
A South Korean casino operator has recorded a 72 per cent year-on-year sales slump, but a nine per cent rise in September.
Asgam reported that foreigner-only casino operator Paradise Co reported a US$18 million decline in table game sales and US$1.6 million fall in poker machine sales, with global border closures as a result of the coronavirus pandemic hurting the company’s access to foreign customers.
Local expats have previously been credited for bringing in a small but steady stream of business to its four casinos – Paradise City, Paradise Walkerhill, Busan Casino and Jeju Grand.
All four briefly closed in late March with Jeju Grand reopening on April 13 and the remaining three on April 20.
Paradise City, the company’s integrated resort project in Incheon, also closed its doors in early September after some staff members tested positive to COVID-19, although the casino and some non-gaming amenities were open again within days.
While casino sales grew in October compared with the previous month, table drop actually fell by 7.7 per cent to US$110.6 million suggesting good luck played its part in providing a sequential increase.
Through the first 10 months of 2020, Paradise Co’s casino sales are down 56.3 per cent to US$249.7 million.
South Korean casino close after virus outbreak
A Korean casino operator said the venue remains closed after six employees tested positive to COVID-19 last week.
Asgam reported in September that the foreigner-only Paradise City said all gaming facilities at the integrated resort in Incheon will remain closed.
A joint venture project between Paradise Co and Japan’s Sega Sammy Holdings, the venue was initially closed for three days from September 1 after one staff member tested positive.
That cluster has now grown to at least six resort staff, including two casino workers, local media reports.
Paradise City said on its website it had “decided to close the entire facility…as a high-intensity measure for the safety of customers, employees and local communities.”
The entire resort will remain closed until 1pm, Wednesday, 9 September with the casino to stay closed “indefinitely”, it added.
“During the suspension period, we will do our best to prevent the spread of infection by expanding the scope of inspections as well as conducting thorough disinfection and precise quarantine for the entire facility, including the relevant business site in close consultation with the quarantine authorities,” the company said.
Paradise Co previously called all four of its Korean casinos – Paradise City, Paradise Walkerhill, Busan Casino and Jeju Grant – on March 23, following the outbreak of COVID-19, before reopening Jeju Grand on April 13 and the remaining three on April 20.
Losses grow at South Korean casinos
Casino revenue losses are piling up thanks to shutdowns related to the COVID-19 pandemic.
Calvin Ayre reported in August that while some casinos are starting to report gains, many are still in the red.
South Korean casino operators Paradise Co and Kangwon Land fall into the latter category.
Kangwon Land’s casino in South Korea is still feeling considerable pressure, reporting a loss of $38.4 million for the second quarter of the year.
This follows a loss of $131.68 million from the first quarter, completing wiping out its $42.97 million profit from the second quarter of 2019.
The Kangwon Land casino is the only property that has been approved for local gamblers and was forced to shut down from February 23 to May 8 because of COVID-19.
When it opened, the casino only welcomed back VIP gamblers at first.
Gross gaming revenue for the second quarter plummeted 91.4 per cent year-on-year and 85.9 per cent quarter-over-quarter.
The figure stood at $23.88 million, with total sales at the venue dropping 90.5 per cent to $29.22 million.
As a result of the continued weak performance, Kangwon Land saw a 63.5 per cent drop in sales across the entire first half of the year, reporting an aggregate loss of $170.1 million.
Paradise, which is behind four foreigner-only casinos in South Korea, was forced to report a net loss of $26.9 million in the second quarter, which was on top of the $2.46 million loss from the first quarter.
Overall sales for the company plummeted 68.1 per cent year-on-year and reached just $62.97 million, while casino sales lost 65.7 per cent to peak at $29.99 million.
The four casinos halted their operations as of March 24, with one, on Jeju Island, picking up where it left off on April 13.