Upgraded Gaming Experience
Kangwon Land plans to increase the casino’s general area from 14,512.68 sqm to 20,260.68 sqm. In addition to the scaled-up space, the entertainment equipment will also be augmented. The gaming devices will reportedly increase to 1,860 from 1,560, with tables rising from 200 to 250. This includes 250 additional slot machines, boosting the total from 1,360 to 1,610.
The property’s promoter also stated plans to revamp the foreign-only zone during the upgrade. Previously only open to foreign nationals, the space will now also accommodate permanent residents, broadening its clientele.
The betting limit will undergo changes to accommodate up to KRW30 million ($22,400), a staggering increase from the previous limit of KRW300,000 ($224). However, this change is still under review by the Enforcement Decree of the Tourism Promotion Act.
Persistent Demand Issues
While this expansion is the first significant change in Kangwon Land in over a decade, there are concerns that its financial impact will be limited. As it stands, the company generates only 1% of its total revenue from its foreigner-centered business. JP Morgan Securities (Asia Pacific) Limited expressed caution about the project, stating that Kangwon Land may not see an immediate boost since it operates in a low-demand environment.
Eyes on the Local and Regional Market
Kangwon Land’s expansion plans go beyond the casino floor expansion. The company announced earlier this year its intentions to invest KRW2.5 trillion ($1.9 billion) in upgrading its resort. It recently completed several upgrades to its VIP facilities to charm a high-end customer base.
These investments align with Kangwon Land’s active pursuit of foreign players. Earlier this year, in April, the company inked deals with Taiwan and Philippines sales agencies to tap into the regional Asian market.
