In a bold effort to enhance its gaming experience and alleviate overcrowding, Kangwon Land, South Korea’s only casino where locals are allowed to gamble, has unveiled a major investment plan. The casino operator will invest KRW 179.6 billion to build a second casino as part of a larger US$1.9 billion expansion project. Additionally, Kangwon Land plans to renovate its existing VIP casino areas to attract high-end players. As part of its strategy to expand its reach, the company has already formed partnerships with sales agencies in Taiwan and the Philippines to tap into foreign markets.
The planned expansion is intended to provide a more accommodating environment for guests, which has become a pressing concern amid the growth of illegal casinos and competition with overseas operators. According to a presentation from the company, its existing casino is “understood as a venue with an excessive number of seats.”
Currently, the average number of tables on Kangwon Land’s main floor exceeds its capacity by two to three times. The number of machines is even higher, leading to frequent complaints from players that the gaming experience needs to be improved by overcrowding.
According to the company, these issues have been exacerbated by illegal casinos that have sprung up since the pandemic and competition from overseas gambling destinations. In addition, the effects of gambling addiction have had an impact on the company’s revenue.
Kangwon Land is also seeking to expand its non-gaming offerings to tackle these challenges. The company aims to increase non-casino revenue to 30 percent of its total revenue by 2032. This will include expanding performance venues, tripling the size of its mall, and adding more dining options.
Kangwon Land has received regulatory approval to add a new section of its mass gaming area, with the number of tables and machines set to increase significantly. It will also change the betting limits in its foreigner-only zone to accommodate bets up to KRW30 million ($22,400), a substantial increase over the current maximum of KRW300,000 ($224).
Kangwon Land is confident that the new expansion projects will enable it to return to growth in the future, even though its mandated monopoly on domestic play expires in 2025. The casino operator is already taking proactive measures to limit revenues, with management lowering active gaming capacity and restricting VIP memberships. However, this is unlikely to offset the impact of increased competition from offshore operators and illegal gaming activities. As a result, the company faces a significant challenge in reviving its profits.
