According to a report by The Korea Herald newspaper, Korean casino operator Paradise Co Ltd on Thursday broke ground on the $1.7 billion site of Paradise City Casino Resort located in Incheon, near the capital, Seoul. The development will begin in 2017.
Paradise is partnering with Japan’s Sega Sammy Holdings for the initiative in Yeongjongdo, Incheon Free Economic Zone. Paradise holds a 55% stake in the joint venture, according to an earlier statement.
The project includes hotels, restaurants, and foreigner-only casinos under current local law. The casino resort will house 160 game tables, 340 slot machines, and 750 hotel rooms, according to a recent memo from Daiwa Capital Markets.
“First and foremost, the resort complex boasts geographical advantages as it is located within walking distance of Incheon International Airport,” Choi Jong-hwan, CEO of Paradise Sega Sammy Co Ltd, told reporters Thursday, according to The Korea Herald.
According to Paradise, the resort will be located a 15-minute walk from Incheon International Airport, which serves Seoul, Korea’s largest airport and capital city.
Choi said in a recent interview that Paradise City’s casinos will build a large network of junket operators to introduce high rollers in mainland China.
Hong Kong’s Standard Chartered Equity Research said in a recent report that the South Korean government hopes China will contribute 4 million, or half of the 20 million inbound tourists it seeks to attract annually by 2017.
However, Choi acknowledged that breaking even in the Paradise City system can still be difficult because only foreign passport holders are allowed to enter the casinos in Korea. Currently, only Kangwon Land, a casino resort in Gangwon Province 150 km (93 miles) southeast of Seoul, is open to locals.
Sammy CEO Paradise Sega said he expects Paradise City to be at least 10 years away from making a profit. According to the National Gambling Commission, total sales of all gambling activities in Korea in 2013 were $19.2 billion, most of which was in horse racing. Casino gambling accounted for $2.2 billion. 안전 슬롯사이트
Yeongjongdo has attracted investments from several global casino brands, including U.S.-based Caesars Entertainment. This week, it was also reported that Chow Tai Phuk Enterprises plans to invest USD 1.6 billion in a new casino resort in Incheon.