GGRAsia – Dream Tower gaming revenue US$3.6mln in opening 20 days

Dream Tower gaming revenue US$3.6mln in opening 20 days

Aug 18, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck

The Jeju Dream Tower resort (pictured), on Jeju island, South Korea, achieved gaming revenue of just under KRW4.20 billion (nearly US$3.6 million) since the casino’s opening on June 11 and until June 30.

That is according to a note from South Korean brokerage Hana Financial Investment Co Ltd, released on Tuesday. Net casino sales (i.e. after deducting rebates and commissions) stood at KRW3.0 billion for the period, the brokerage added.

Lotte Tour Development Co Ltd is the operator of the Jeju Dream Tower complex. The hotel portion of the resort opened in December.

KRW2.22 billion of the first 20 days of gaming revenue was from the VIP segment, according to the note from Hana Financial Investment. Just under KRW1.92 billion came from mass table play; and KRW58.6 million from slots and other games. VIP rolling chip volume for the period was KRW18.22 billon. Mass table drop – the amount of cash exchanged for chips at the table – was KRW14.11 billion.

Hana Financial Investment forecast net casino sales at Jeju Dream Tower would reach approximately KRW15 billion in the third quarter of this year.

The note said the current average daily gaming revenue amount of KRW200 million at the property would be improved to KRW300 million “in the near future”. The brokerage also forecast third-quarter total sales (including casino and non-gaming) would be KRW47.0 billion, and the venue’s operational deficit would be KRW12.0 billion in the third quarter. Hana Financial Investment noted the actual result would depend on ongoing operating conditions, including social-distancing rules relating to the Covid-19 pandemic.

The Jeju government said that from Tuesday (August 16) it would – until 12am on August 30, as a Covid-19 countermeasure – tighten locally the social-distancing protocol to the highest status: “Level 4”, from “Level 3”.

Currently three out of Jeju’s eight in-commission foreigner-only casinos are operating; Jeju Dream Tower, Paradise Casino Jeju Grand, run by Paradise Co Ltd, and Landing Casino, run by a unit of Hong Kong-listed Landing International Development Ltd. The venues would not be materially affected by “Level 4”, according to a representative at the Jeju local government, contacted by GGRAsia.

Jeju is a semi-autonomous region, and has a regulatory system for its foreigner-only casinos that is specific to the island. Its Covid-19-related casino daily capacity rules are: 30 percent of the usual carrying capacity under the Level 4 protocol; then 40 percent capacity under Level 3; then 50 percent under Level 2; and 60 percent under Level 1, with no operation time limits for all levels.

Representatives at the three currently-operating casinos respectively stated to GGRAsia on Tuesday that recently their average volume of daily guests had been far below the permitted maximum.

As of 5pm on Tuesday, Jeju had recorded 2,221 Covid-19 infections and one fatality, since the first case reported in February 2020. It had also recorded 42 new cases in 24 hours, according to the Jeju local government website.

As of Tuesday-end, South Korea had recorded 1,805 new cases in 24 hours, taking the confirmed tally to 228,657, including 2,178 deaths, according to the Ministry of Health and Welfare.