GGRAsia – Kangwon Land extends casino closure, ups likely loss

Kangwon Land extends casino closure, ups likely loss

Feb 26, 2020 Newsdesk Latest News, Rest of Asia, Top of the deck

Kangwon Land, the only casino resort in South Korea where the country’s nationals are allowed to gamble, has decided to extend the closure of its gaming venue until 6am on Saturday (February 29). The announcement was made by the venue’s operator, South Korea-based Kangwon Land Inc in a Tuesday filing to the Korea Exchange.

The casino operator had originally announced a temporary closure from noon on Sunday (February 23) until 6am on Wednesday (February 26). The shutdown was described as a precautionary measure related to an outbreak of Covid-19 infections in that country.

Kangwon Land Inc’s original announcement came after South Korea’s government put on Sunday the country’s response to Covid-19 on its highest alert level. Twelve people have died from the illness in South Korea and more than 1,100 have been infected, according to information from the country’s health authorities issued on Wednesday. The country now has the second-highest number of cases in the world, after China.

About two dozen countries and places, including Macau and Singapore, have levied restrictions on travellers from South Korea, while flights and tours to the nation are being cancelled. All flight services between Macau and South Korea have been cancelled until March 1, according to the Macau authorities.

In Tuesday’s filing, Kangwon Land Inc also revised upwards its expected loss for the shutdown period. The company said it now expected a loss of about KRW22 billion (US$18.1 million) during the extended closure period. The estimate was based on Kangwon Land’s daily casino revenue in full-year 2019, it added.

Kangwon Land Inc’s full-2019 net profit rose by 12.7 percent in year-on-year terms, supported by stronger sales and lower costs, the firm said earlier this month. Such profit in the 12 months to December 31 was KRW335.06 billion compared with nearly KRW297.24 billion in 2018, according to an earnings filing.

South Korea’s nationals are only allowed to gamble at Kangwon Land casino resort (pictured in a file photo) in an upland area of Kangwon province – 150 kilometres (93 miles) from the country’s capital Seoul. The company is – as the only authorised provider of casino gaming to South Korean nationals – subject to significant oversight from the country’s government.