Mere hours ago, a representative of Melco Crown Entertainment Ltd. announced that for the time being, the company is not going to enter the South Korean gambling market.
What made Melco Crown executives settle down around this decision was the fact that the South Korean authorities have not figured out the gambling rules and regulations, related to the accessibility of the casinos, located on South Korean soil.
Currently, local authorities do not permit residents to use the gambling facilities. They are available to foreigners only.
Lawrence Ho Yau Lung, an executive of Crown, was reached for a comment and he said that even if the company establishes a casino in the area, it is not likely to be profitable. Ho added that the policy, concerning the prohibition on locals to enter casino venues, is really unfavorable.
Ho gave a brief interview for a reputable media during the ceremony for the grand opening of City of Dreams Manila. The executive said that Melco will concentrate its efforts predominantly on consolidating its positions on the Philippines gambling market.
A few weeks ago, the South Korean authorities decided to give the green light to the establishment of two casinos on the territory of the country but they were unwilling to consider lifting the ban and allowing locals to participate in gambling activities.
Actually, there is only one casino resort, which South Korean residents are permitted to enter. It is situated in Kangwon Province but cannot take pride in being a well-attended one due to its inconvenient location.
The South Korean gambling regulators remained tight lipped as to whether they were about to let locals use the gambling facilities available at the casino resorts. Investors willing to establish casinos in South Korea rely on attracting more Chinese players in order to turn a profit.
The two casinos that have been approved by the authorities are believed to be more conveniently located.
The first one will be managed by Lippo Ltd, a Hong-Kong listed company, which will work in collaboration with Caesars Entertainment Corp. and it will be located near Incheon International Airport.
The second one will be a result of the join efforts of Sega Sammy Holdings Inc. and Paradise Co Ltd.
According to Mr. Ho, locations are not quite well-thought-out since in order a viable integrated resort to be established, the daily traffic should exceed 30,000 people, which is impossible given the above-mentioned locations.
Nevertheless, Mr. Ho confirmed that his company will enter the South Korean gambling market as soon as it is open for locals.
