South Korea earned the amount of KRW62.5 trillion ($54.56 billion) in the period between 2000-2015 from what seems to be a profitable gambling industry, local media reported citing an industry study by the country’s Taxpayers Association.
Data shows that gambling operations in the country generated KRW31.55 trillion in taxes over the reported period. The remaining KRW30.95 trillion from the bulk represented gambling profit from government-run operations.
Horse racing was the biggest gambling contributor over the years. Proceeds from those particular activities accounted for 37.5% of the whole. Lottery products represented a 25.4% chunk. Land-based casinos accounted for 12.3% of the total.
The Korea Taxpayers Association noted that tax revenue saw a more than 50% rise over the years from KRW1.17 trillion back in 2000 to KRW3.42 trillion in 2015. Related contributions rose almost eight times from KRW454 billion in 2000 to KRW3.42 trillion in 2015.
As for profits from gambling operations, those increased four times from KRW1.3 trillion in 2000 to KRW5.84 trillion in 2015.
A recent report showed that gaming and lottery sales in the East Asian country increased 7.7% year-on-year to KRW20.3 trillion. That figure included proceeds generated from betting, casino gambling, and lottery. Here it is important to note that foreigner-only casinos were not included in the overall sum. There is only one casino in the country that admits residents to its gaming floor. The gambling venue reported sales of KRW455 billion for the twelve months ended December 31, 2016.
Horse racing sales contributed the most to the gambling bulk last year. Those generated the amount of KRW7.7 trillion, up 0.2% from a year earlier. Lottery sales rose 9.3% year-on-year to KRW3.9 trillion. Cycling betting sales amounted to KRW1.9 trillion last year, up 1.7% year-on-year.
According to South Korean scholars the growth in the country’s gambling industry could be attributed to “economic depression” that has been urging people to gambling facilities.
South Korea, similarly to several other countries in the Asia-Pacific region, is in the middle of massive casino industry expansion. It too has adopted the integrated resorts model in a bid to boost even further its gambling and tourism rates.
Integrated resorts have become a leading trend within the land-based casino industry. Complexes of this kind have become a favorite spot to wealthy casino patrons, particularly ones from Mainland China. What is more, given the fact that these offer diverse options beyond gambling, they thus attract non-gambling visitors, as well.
Two integrated casino resorts are slated to open doors in South Korea before the end of this year. Here it is important to note that these, too, will be intended for non-Korean players. The South Korea government has issued several more licenses for casino resorts and more of them will join the country’s gambling landscape in the years to come.