MGM Osaka could divert up to US$1.72bn from South Korean casinos, study warns
Entry restrictions, betting limits and limited operating hours could weaken South Korea’s competitiveness.
Key takeaways:
- A study warns that South Korea’s casino industry could lose up to KRW2.32tn (US$1.72bn) in annual gaming spend following MGM Osaka’s planned 2030 launch.
- Entry restrictions, betting limits and operating hours are identified as factors influencing travel intentions. The researchers advise against new requirements and short-term renewable licences for operators.
South Korea.- South Korea’s casino industry could see up to KRW2.32tn (US$1.72bn) in annual gaming spend diverted to Japan following the planned 2030 opening of MGM Osaka, according to an academic study presented at a Korea Casino Association forum. The findings raise questions about how South Korea’s regulatory framework and casino operating conditions could affect its ability to retain domestic and international players as Japan develops its integrated resort market.
Kyung Hee University tourism professor Lee Chung-ki presented the study at a Korea Casino Association forum, highlighting a significant threat to both Kangwon Land, South Korea’s sole casino open to domestic players, and the country’s 17 foreigner-only casinos. The study suggests that Kangwon Land could suffer an annual spend diversion ranging from KRW316.51bn to KRW1.27tn (US$235m to US$954m) as 52.1 per cent of its surveyed customers expressed an intention to visit MGM Osaka.
Meanwhile, foreigner-only properties could see outflows between KRW807.07bn (US$600m) and KRW1.05tn (US$788m) as VIP players migrate to the Japanese resort.
The study emphasises regulatory rigidity and operational limitations in South Korea as possible drivers of player attrition. Surveyed patrons cited a desire for fewer entry restrictions, 24-hour operations, higher betting limits and expanded non-gaming facilities. The report warns South Korean policymakers against new demands on casinos or introducing short-term renewable licences for foreigner-only operators.
