Caesars Attempting Asian Market in South Korea
Caesars Entertainment Corp. is finally expanding into the Asian market with preliminary approval for a large casino and resort complex in Incheon, South Korea. The project is being built by a consortium including Caesars of Las Vegas, OUE Ltd of Singapore and Lippo Ltd. based in Hong Kong.
Like all South Korea’s casinos except the Kangwon Land Resort & Casino, the complex is open to foreign visitors only. Proximity to China and the volume of Japanese visitors already coming to South Korea to gamble show that the $ 2.3 trillion ($ 2.2 billion) investment has good prospects of success.
It should be noted that Japan may soon normalize gambling laws within its own borders and that about 33% of foreign gambling revenue in Korea currently comes from that country. There are currently 17 casinos in South Korea. About half of all revenue is generated at Kangwon Land Resort & Casino, which accepts bets from domestic and foreign players.
The casino complex is one of several mega-resorts that will compete for business. Genting Singapore and Landing International Development of China are planning to build on Jeju Island. Paradise Entertainment Limited has partnered with Japanese Sega Sammy Holdings Inc. and plans to build a $ 1.7 billion Incheon resort.
Caesars missed the speedboat to Asia when they were unable to gain a foothold in Macau a decade ago. Macau surpasses Las Vegas with annual sales of approximately $ 46 billion.