Japan-based conglomerate Sega Sammy Holdings Inc says it is seeking to “accumulate expertise” on the operation and development of casinos by taking part in Paradise City (pictured), South Korea’s largest casino resort.
Sega Sammy owns a 45-percent stake in the scheme, via Paradise Segasammy Co Ltd, a joint venture with Paradise Co Ltd, an operator of foreigner-only casinos in South Korea. The initial phase of Paradise City – adjacent to the Incheon International Airport, serving the capital Seoul – was launched on April 20.
In a presentation titled “Road to 2020”, Sega Sammy said it plans to send some of its executives and employees to Paradise Segasammy, for them to gain direct experience on the operation and development of casinos. The company additionally said it wants to “enhance brand recognition” in the management of so-called integrated resorts.
Sega Sammy also operates the Phoenix Seagaia Resort, in Miyazaki, Japan – a property with no casino but that allows the conglomerate to gain experience on the operations of resorts, the firm said in its presentation paper.
Sega Sammy confirmed a fortnight ago that it is already in talks with potential international partners regarding forming a consortium to seek a licence for a casino resort in Japan.
Legislation making casino gambling legal in Japan came officially into effect on December 26. After approval of the enabling bill legalising casino resorts at the conceptual level, a second piece of legislation has now to be passed, detailing the specifics, including how casinos are administered and regulated.
Sega Sammy has said it is restructuring its business to invest more resources in growth areas, including the development of integrated resorts. The group said it is targeting sales of JPY500 billion (US$4.48 billion) in its fiscal year ending March 31, 2020, with operating income of JPY75 billion and an operating income margin of at least 15 percent.
For the full year ended March 2017, Sega Sammy saw its sales increased by 5 percent year-on-year to JPY366.9 billion. The company recorded operating income of JPY29.5 billion, with an operating income margin of 8.0 percent.
