The locals-play monopoly enjoyed in South Korea by the casino at the Kangwon Land complex since the facility (pictured) opened in October 2000, has so far been affirmed by the national authorities on a rolling basis. But the question of ending its locals-play monopoly is likely to be raised in any meaningful discussion of the future for the South Korean casino industry.
That is according to several experts on the industry, in comments to GGRAsia.
A possibility would be for foreigner-only casinos in that country – there are 17 currently – to be allowed to apply for some form of conditional licence to serve local players, said one of the commentators.
Kangwon Land, run by Kangwon Land Inc, opened at the start of the century, under the mandate of the “Special Act on the Assistance to the Development of Abandoned Mine Areas,” enacted in 1995. The measure was renewed in 2009, forward-dated for a 10-year period up to 2025. In 2021 the act was renewed in advance, to cover a 20-year period from 2025 to 2045.
Kangwon Land is in Gangwon Province’s Jeongseon County – a highland area and former coal mining district east of Seoul and a three-hour drive from that capital city.
In 2024 the property accounted for 42.3 percent of the South Korean casino sector’s gross gaming revenue (GGR) generating KRW1.36 trillion (about US$950 million) according to data from the Ministry of Culture, Sports and Tourism, which oversees the industry.
In several visits to the property this year by GGRAsia, occupancy of gaming tables and machines by local players was strong, and would-be players were seen queuing for registration.
Previously, when the idea of ending Kangwon Land’s local-player monopoly has been raised, it has been opposed by people in the locality, according to South Korean news outlets. The former mining area benefits from cash transfers drawn from the operation.
Under Article 11 of the special act, Kangwon Land Inc is expected to contribute up to 13 percent of its casino revenue to an Abandoned Mine Fund.
Lee Jae-seok, associate professor at Gangneung-Wonju National University, told GGRAsia he had “never heard” anyone suggest that the special act would not be extended even beyond 2045.
Case for extending locals play
But he said a gradual transition toward conditional local-player licensing for selected foreigner-only casinos – with the possibility of periodic renewal – was “essential” in the long run. That was if South Korea were to have a regionally-competitive integrated resort (IR) sector of the sort desired by Japan, rather than focusing largely on harm mitigation for South Korean citizens.
Japan will have no ban on locals, though there will be an entry fee for them. Only one Japanese IR has so far been approved and is under construction: MGM Osaka, due to open in 2030.
Mr Lee suggested that what he termed “properly organised” IR projects in South Korea could bolster the country’s hotel inventory available to domestic and overseas tourists.
He said that if other South Korean venues were able to offer gambling to locals, then to compensate for that, there should be relaxation of some of Kangwon Land’s regulatory constraints. Those include that currently Kangwon Land is limited to 20 hours of operations in any 24-hour cycle, and that locals are allowed to use the casino no more than 15 days per month.
While Kangwon Land’s current expansion project ‘K-Hit 1.0’, was specifically established so that the business could continue supporting the regional community, giving the resort a wider mission could help it enhance the tourism market of the whole country, suggested Mr Lee.
An Ock Mo, president of the Korea Gaming Tourism Professionals Association, told GGRAsia that the post-2045 future for Kangwon Land needed active discussion.
But she thought that “extending the special law beyond 2045 is unavoidable, as the casino underpins the regional economy through employment, tax revenue and associated industries”.
Ms An further stated: “If the [Kangwon Land locals-monopoly] licence were allowed to expire, the local community will suffer significantly.”
She added however that the local area could reduce its reliance on cash transfers from the casino by becoming a hub for other leisure and tourism products such as resorts, healthcare facilities, and eSports.
