Paradise reports multimillion dollar 2020 loss 

by Ethan Anderson Last Updated
Paradise reports multimillion dollar 2020 loss 

Casino games maker Paradise Entertainment slipped to a US$24.3 million loss for 2020, it said in a filing to the Hong Kong Stock Exchange.

The results were “significantly affected” by the outbreak of COVID-19 and subsequent travel protocols, said the group in commentary on the results.

Paradise Entertainment managing director and chairman Jay Chun was quoted in the release as saying that Macau’s gaming market was “significantly disrupted” as the pandemic brought the global travel and tourism industry “almost to a standstill”.

The group’s 2020 loss was on revenue that fell 70.2 per cent, according to GGRAsia.

Macau’s overall casino gross gaming revenue shrank 79.3 per cent year-on-year in 2020.

The group said a factor in weaker 2020 performance was absence of revenue from casino management services after it ceased on February 29, 2020 to manage casino operations at Casino Waldo, a so-called satellite venue in Macau under the licence of Macau concessionaire Galaxy Entertainment Group.

Paradise Entertainment still runs casino operations at Casino Kam Pek Paradise, under the licence of Macau concessionaire SJM Holdings.

At Casino Kam Pek Paradise, GGR declined 56.2 per cent year-on-year.

In addition, the games makers saw its 2020 income from the sale of electronic gaming equipment and systems fall 85.8 per cent.

Paradise Entertainment sold 23 slot machines overseas and 20 terminals of its electronic table game product series Live Multi Game in Macau, while providing upgrade services for 438 LMG terminals in Macau.

Revenues fall at South Korea’s foreigner-only casinos

The operator of South Korea foreigner-only casinos said that its sales declined by more than one third in January, with year-on-year sales down almost two-thirds.

GGR Asia reported in February that Paradise Co said its January sales fell 36.2 per cent month-on-month and 61.8 per cent when compared to a year ago.

The group’s January casino revenue amounted to US$24.5 million, a decrease on the US$38.2 billion achieved in December and down further than the US$63.9 billion achieved last January.

Machine-game sales for January were up 28.7 per cent compared to December, but down more than 54 per cent compared to the prior year.

Paradise Co’s gaming operators include Walkerhill in Seoul, Jeju Grand on Jeju Island, Busan Casino in Busan and Paradise City in Incheon, near the company’s main international airport.

Paradise Casino Walkerhill had reopened on January 4, having been closed since December 15 as a COVID-19 countermeasure.

Caesars under pressure to finish South Korea 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.

But additional financing has been hard to procure.

Just 25 per cent of the construction work is complete.

Reports surfaced last week that authorities in Seoul are growing tired of the lack of progress on the endeavour and are giving Caesars two months to get its house in order or risk losing the gaming permit.

The US gaming company was approved for the project in 2014.

Caesars Korea is designed to be a foreigners only casino with more than 720 rooms, suites and villas.

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