GGRAsia – New Silkroad reins in gaming expansion despite Jeju success

New Silkroad reins in gaming expansion despite Jeju success

Jul 05, 2019 Newsdesk Latest News, Rest of Asia, Top of the deck

New Silkroad Culturaltainment Ltd, the operator of a casino in South Korea, says it has no plans to expand its gaming business any further.

New Silkroad runs the MegaLuck casino (pictured), on the island of Jeju, off the south coast of South Korea. Only foreigners are allowed to gamble in the MegaLuck casino.

In 2017 the company announced its intention to build another casino on Jeju. New Silkroad told the Hong Kong Stock Exchange on Thursday that the Sino-United States trade war may harm the global economy.

“The group remains cautious in identifying suitable business development opportunities for its gaming business, with a view to produce a steady growth in its long-term performance,” the company said.

New Silkroad told the market that it was cautious in spite of the performance of the MegaLuck casino.

“Through active marketing and efforts to raise service standard and to enhance customers’ gaming and overall travel experience, MegaLuck has effectively pushed up patronage as well as its gaming gains,” the company said.

New Silkroad said it had collected about HKD103.6 million (US$13.3 million) in gaming revenue in 2018, or 11.9 percent more than the year before. The company said the MegaLuck casino was among the biggest earners of gaming revenue on Jeju.

“The group’s continuous marketing effort to the MegaLuck casino as well as the influx of visitors to Jeju arising from the launch of new major tourism sites in Jeju are expected to bring positive impact to the casino business of the group in the first half of 2019,” the company said.

“As at the latest practicable date, the group had no plan to further expand its gaming business,” it added.

In 2017 New Silkroad announced that it had taken control of a venture called Macrolink Glorious Hill Co Ltd. The venture has a project to develop a resort at Glorious Hill on Jeju, which is meant to include a big casino.

In its latest disclosure to the Hong Kong Stock Exchange, New Silkroad touches on the Glorious Hill project but fails to make any specific mention of a casino in the resort.

In March New Silkroad reported that it made an annual profit of just over HKD64.41 million in 2018, having made a loss of HKD70.99 million the year before, on annual revenue that grew to HKD460.76 million from just under HKD295.49 million.