Local South Korean casino provider Paradise Co Ltd posted an increase in its 3Q revenue and a drop in its profits. The company generated turnover of KRW 172.6 billion ($ 157 million). Its earnings, however, dipped by 7.6 percent to the amount of KRW 25.6 billion or $23 million. Chinese VIP players contributed seriously to the operator’s increased gaming turnover, which amounted to KRW 139.9 billion by the end of October.
Paradise owns five of all seventeen casinos within the territory of South Korea. The company is about to start the construction process of а new gambling facility that is planned to be finished and launched by 2016. Paradise works on this project together with the Japanese gaming holding Sega Sammy. The new facility is to become Korea’s first large-scale integrated casino resort. Initially, its building process was supposed to start in October, but then it was announced that it was pushed back to November.
Kangwon Land, the first and currently the only casino that allows to South Korean citizens access to its premises, posted a 3.6-percent drop in the number of visitors for this year’s third quarter. And this led to a 6.6-percent decrease in turnover from non-gaming activities. It added up to KRW 18 billion. Gaming turnover, on the other hand, increased by 5.9% or reached KRW 376 billion ($342 million). It is also important to note that more and more Chinese players travel to Korea to take advantage of what its casinos offer. Due to this, earnings reached KRW 105.5 billion, posting a slight 0.9-percent rise.
Similarly to Paradise, Kangwon Land also has certain construction problems. A mere weeks ago, prosecutors announced that an investigation was carried out, concerning the building of a theme park, located in a near proximity to the casino. Kangwon Land executives were allegedly taking bribes from the construction company, assigned to implement the project.
According to the prosecutors, the company in question employed a subcontractor to take care of the new theme park. This was explicitly banned in the contract, yet High1 seem to have overlooked the matter. After the financial accounts of the subcontractor were examined, it was proved that KRW 10 million or $900,000 were transferred and classified as “gratitude to High1” and many more were classified as “golf expenses.”
Prosecutors announced that the subcontracting company had stated with assurance that they had offered money to executives of High1. What is more, CEOs of the entertaining company were also said to be currently discussing the merits they could provide the subcontractor with. They, however, denied all these allegations.
Back in April, Kangwoon Land brought the High1 themed water park project to a standstill, due to financial concerns. At present, the facilities that have already been completed are not used for anything.
