GGRAsia – Mohegan says Inspire fully funded, 4Q non-gaming launch

Mohegan says Inspire fully funded, 4Q non-gaming launch

May 12, 2023 Newsdesk Latest News, Rest of Asia, Top of the deck

Mohegan Tribal Gaming Authority says it does not anticipate further investment for its South Korea casino complex Inspire Entertainment Resort (pictured) relative to the additional US$119 million it had already announced, of which US$28 million has already been committed.

The first phase of the scheme at Incheon, near the South Korean capital Seoul – which will have a foreigner-only casino – has previously been described by the United States-based casino operator as a US$1.6-billion venture.

Carol Anderson, chief financial officer of the entity, which trades as Mohegan Gaming, said on Thursday on the group’s second-quarter fiscal earnings call for the three months to March 31: “As previously announced, we agreed to make additional investment of up to KRW155 billion, or approximately US$119 million equivalent, to fund costs to complete Mohegan Inspire, of which approximately KRW36 billion, or approximately US$28 million equivalent, was contributed in the March 2023 quarter.”

She confirmed the project was “100 percent Mohegan owned”.

The CFO noted that Mohegan Gaming’s total debt “including capital leases but excluding unamortised debt issuance costs and discounts, was US$3.02 billion, up US$135.1 million from US$2.88 billion in the December quarter”.

Ray Pineault, chief executive of Mohegan Gaming, stated on the earnings call: “I just came back from [South] Korea…. The progress they made last month was tremendous and I’m very confident that in the fourth quarter of this calendar year, we’ll be able to open the non-gaming portions of the resort.”

He added: “The casino licence itself is subject to some conditions following the opening of the non-gaming amenities…”

The CEO further noted the project was “now over 70 percent complete, as we’re into May”.

Mr Pineault stated additionally: “Absent any major changes, and anything happening in 90 days, we do not anticipate any additional equity injections beyond those we have already disclosed.”

According to an earnings presentation issued along with the group’s results, the property sits on 660 acres (242.8 hectares) and will be “multi-phase”.

It will include – as well as the foreigner-only casino – three hotel towers totalling 1,200 hotel rooms; a 15,000 seat arena and convention space; dining, shopping and entertainment facilities; a year-round indoor water park; and an outdoor family park.

The presentation said the property would be “comparable in size and scale to Mohegan Sun”, the group’s flagship resort associated with Connecticut in the United States. The latter has 1,562 rooms and a 10,000 seat arena.