Korean casinos’ first losses estimations
South Korea’s casinos will feel the impact of the closure that has been extended until April.
South Korea.- Casino operators began to calculate the numbers of the losses they are going to face after the closure of all properties to help in the fight against the coronavirus outbreak, with operations stopped at least until April 6 in the country.
Grand Korea Leisure, which operates three foreigner-only casinos in Seoul and Busan, estimates a sales loss of KRW17.5 billion (€ 13 million) as a result of its two-week closure. This estimation is based on the daily average of total casino sales in 2019.
In January and February, Grand Korea Leisure was actually posting very strong results – KRW48.9 billion (€36 million) for the two-month period, which was up 48 per cent on the 2019 numbers.
Grand Korea Leisure employs over 1,800 people, including the head office and casino staff, of which about 80 per cent have now been put on paid leave.
On the other side, Kangwon Land, which closed its doors on February 23 and is scheduled to reopen on April 6, is calculating a KRW15.8 billion (€ 11.7 million) sales loss. But it is not only the finance of the company at risk. This casino, based in rural Gangwon Province and the nation’s only casino that can serve South Korean gamblers, has a surrounding community that is suffering too because many local businesses have depended on Kangwon Land and the tourists it draws for their own revenues.