The government of South Korea has released information about the revenue generated by the country’s gambling and lottery industry. According to official data posted by local media, both sectors have expanded for the ninth consecutive year back in 2014.
The total amount of KRW19.7 trillion ($17.6 billion) was generated out of sales during the twelve-month period ended December 31, 2014. They increased 1%, which is approximately KRW199.2 billion ($176.5 million).
Sports betting and lottery tickets contributed more than KRW3.28 trillion ($2.9 million) each. They marked a 6.5% and 1.4% increase as compared to what was posted back in 2013.
Although the country’s gambling industry expanded during the past twelve months, government officials pointed out that local market’s growth was slower than in the past several years. For instance, back in 2011, revenue from gambling-related activities increased 5%. In 2012, it grew by 6.5%. As for 2014, a mere 0.6% growth was posted.
Government representatives pointed out that revenues will most probably exceed the KRW20 trillion ($17.7 billion) by the end of 2015, due to the constantly growing demand for casinos and other gambling-related activities in the country.
Currently, only one South Korean gambling venue allows residents of the country to enter its premises – the so-called Gangwon Land Casino, located in the Kangwon province. This means that revenues from casinos are primarily coming from Asian players that travel to the country, in order to try their luck at its gambling venues.
As previously reported, Chinese President Xi Jinping started a massive anti-corruption campaign in Mainland China and its administrative region Macau, known to be Asia’s biggest gambling hub. This, however, led to a significant withdrawal of Chinese high rollers, who are now looking for new gambling options.
As it seems, South Korea is planning to take full advantage of the opportunity, as earlier this year, its government announced that it would issue more casino licenses.
The Jeju Island seems a particularly attractive location for investors and gambling operators. The island is home to 8 of the country’s 17 casinos. And it was last month that China-based real estate developer Landing International Development Ltd. broke ground on its $2.2-billion integrated resort.
Furthermore, Hong Kong-based casino operator Chow Tai Fook Enterprises Ltd. was given the nod to build a casino and hotel resort near Incheon, not far from South Korea’s biggest airport.
And Landing International Development and Chow Tai Fook Enterprises are only few of the companies that have expressed interest in expanding their businesses on the territory of the country. Only time will show whether South Korea will manage to further establish itself as a popular gambling destination.
