Korean casinos revenue drops in 1Q2017
Relations between South Korea, North Korea and China are getting worse and the situation has dragged the casino revenue down in the first quarter of the year.
Korea.- The international unrest in the eastern Asian region has impacted in the South Korean casino industry and has caused revenue to drop in the first quarter of 2017. Relations between South Korea, North Korea and China keep falling apart and casino operators worry that the situation can get even worse.
Grand Korea Leisure, the second largest casino operator in the country that provides gambling only to foreign players saw a 34 percent downturn in its first quarter revenue, in comparison to the same period last year. The venue reported just US$15.6 million in revenue between January and March. Such poor figures worry operators as they rely on tourists for a good deal of their business.
According to analysts, the lack of visits from Chinese gamblers might be related with the slum: the Chinese government has been dealing with corruption accusations and that has impacted internally. Furthermore, players capability to fly to Korea has been restricted due to the lack of flights that’s related to government’s dispute with the US and its relations with North Korea.
Kangwon Land, the only casino that caters to local gamblers, experienced a similar fate as its revenue dropped 9.1 percent. Korean players seem to be refraining from unnecesary expenses such as gambling in the midst of such a complex political landscape. Casino revenue in Korea may still be low as the geopolitical tension grows and uncertainty with it.
