South Korea’s Foreigner-Only Casino Operators See Monthly Decline

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This comes after a strong May in revenue.

Key Takeaways:
  • June casino revenues dipped for GKL and Paradise Co after strong May
  • Year-to-date growth remains positive despite monthly setbacks
  • Underlying demand persists with resilient table drop and machine-game revenues

South Korea’s listed foreigner-only casino operators finished June on a softer note after a strong May, with both Grand Korea Leisure and Paradise Co reporting sharp month-on-month declines, according to AGBrief. 

GKL’s June casino sales came in at KRW37.2 billion ($24 million), up 6.9% from a year earlier but down 13.8% from May, while Paradise Co posted KRW63.17 billion, a 21.2% annual drop and a 35.6% slide from the prior month.

Mixed Momentum in the First Half

The June pullback did not erase year-to-date gains. GKL’s first-half casino revenue rose 8.2% to KRW227.2 billion, while Paradise Co’s increased 5.1% to KRW477.6 billion, according to the company disclosures. 

GKL’s growth was supported by a 13.9% rise in casino drop to KRW1.98 trillion, helped by improved relations with China and eased visa rules. GKL’s first-half table-game visitation also climbed 17% to 97,437.

Table Drop Remains Resilient

Operationally, both operators showed signs of underlying demand even as monthly revenue weakened. GKL’s June machine-game sales rose 22% from a year earlier, while Paradise Co’s machine-game revenue gained 16.8%. 

Paradise Co’s June table drop reached KRW641.13 billion, up 10.3% year on year, and its first-half drop advanced 8.1% to KRW3.81 trillion. GKL runs Seven Luck casinos in Seoul and Busan, while Paradise Co operates properties in Seoul, Busan, Jeju and Incheon.

The South Korea Gambling Control got a new chairman in April of this year. The commission will now be led up by Choi Byung-hwan.