In an ambitious move to amplify its gaming environment and address the issue of overcrowding, Kangwon Land, the sole casino in South Korea where locals are permitted to gamble, has announced a significant investment plan. The casino operator will invest KRW179.6 billion (approximately US$128 million) into constructing a second casino site as part of a broader US$1.9 billion expansion project, aiming for completion by December 2027.
Strategic expansion to elevate gaming experience:
This new facility is set to sprawl across 16,161 square meters within the multiple levels of the High1 Grand Hotel Main Tower. The announcement, made in a recent filing, marks a proactive step to enhance the guest experience significantly.
The broader scope of Kangwon Land’s expansion includes a variety of new amenities aimed at transforming the location into a comprehensive resort destination. Alongside the new casino site, plans reveal the addition of a luxury hotel and an array of leisure facilities. These include upgraded walking trails, a wellness center, and a luxury pool villa, all designed to offer a holistic and enriched visitor experience.
As reported in April 2024, echoing the details of the project, interim CEO Choi Cheol-Gyu highlighted the intent to address the chronic shortage of player seats that has plagued the venue. With the current gaming space set to triple, the expansion will include sophisticated VIP rooms and increased gaming facilities, such as 250 gaming tables and 1,860 machines—a notable rise from the existing numbers, according to Inside Asian Gaming.
Addressing global competition:
The strategic expansion is not solely focused on enhancing capacity but also on fortifying Kangwon Land’s competitive edge against burgeoning global threats. Notably, the upcoming MGM integrated resort in Osaka, Japan, with its massive US$10 billion investment set to open in 2030, represents a significant competitive threat. In response, Kangwon Land’s expansion includes features aimed at attracting both Korean and international visitors, such as helicopter services to the new VIP rooms and a sky bridge connecting the casino to the High1 Ski and Golf Resort.
Regulatory and market challenges:
Kangwon Land’s expansion plans also come at a time when the casino industry in Asia faces multiple challenges, including the recovery from the COVID-19 pandemic’s impact and the rise of illegal and grey-market gambling activities. Analysts from JP Morgan have pointed out the slow recovery pace in 2023, attributing it to the widespread availability of alternative gambling options like ‘Hold’em’ pubs and online casinos.
Additionally, the broader Asian gaming landscape is evolving, with potential market openings in Thailand and ongoing growth in the Philippine gaming sector, adding pressure to maintain competitive relevance.
Construction for the new casino facility is scheduled to start in December 2024, with an ambitious timeline set to round off by the end of 2027. The approval from the Ministry of Culture, Sports, and Tourism, secured on September 4th, paves the way for this extensive development, reflecting Kangwon Land’s commitment to evolving from a traditional casino operator to a multi-faceted resort complex.
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Vanja Mitic 2024-12-03 14:28:34
