The Motley Fool – With gaming growth in Macau and hopes for Japan later this year, gamblers and investors alike are wondering which countries will also follow suit and ramp up their gaming industries. Because the country wants to support cultural development and it already has a head start with its leisure and gaming industry, South Korea might become yet another high-profit growth region for gaming in South East Asia.
Since the South Korean government decided to allow large-scale casinos in the country two years ago, only one company has successfully won a bid to build there. Genting, the operator of Resorts World casinos, announced in February that it plans to build the $2.2 billion Resorts World Jeju. Because the country already has 17 small-scale casinos, it might seem that if it hasn’t happened already the industry there is not going to boom. Yet consider that out of the 17 small casinos, the only one where nationals can play makes more profit than all of the other 16 casinos combined. A decision that opens new, large-scale casinos to nationals, in a wealthy country where the GDP per capita is similar to that of Japan, could create a huge untapped market.
Financial requirements for companies that hope to win bids have been too tight. A South Korean government official said that “We are considering easing the bidding standards after receiving complaints that it is too difficult to meet the criteria of credit ratings, but we have yet to decide on detailed plans.” This hits home for Caesars Entertainment has also expressed interest in the market. CEO Jim Murren said last year that the company plans to continue growing along with gaming expansion in Asia. Speaking on South Korea, he said that “The view is becoming more favorable, so we’ll have to see. But that is potentially, again, a very large opportunity.”
