GKL, Paradise, Dream Tower, etc.
August Performance Shows Simultaneous Uptrend
Inflow of Big Spenders Boosts Drop Amount and Hold Rate
Last month, the revenue of major foreigner casinos rebounded sharply compared to the previous month. This was the result of an increase in VIP customers, known as big spenders, along with a simultaneous rise in drop amount (the amount casino customers exchange for chips) and hold rate. The hold rate is the percentage of the drop amount that the casino wins from the games. The higher the drop amount and win rate, the greater the revenue for the operator. The company with the largest increase in performance was Grand Korea Leisure (GKL), which operates Seven Luck.
According to the industry on the 5th, last month GKL’s casino revenue from its three Seven Luck branches in Gangnam and Yongsan in Seoul, and Busan reached 41.3 billion KRW, a 114.7% increase compared to the previous month. During the same period, the drop amount rose 8.9% to 330.8 billion KRW, with a significant increase in the hold rate leading to the revenue growth.
Previously, GKL’s overall hold rate was 6.3% in July but nearly doubled to 12.5% last month. A GKL official explained, "In July, the hold rates in Gangnam (COEX) and Busan were low, causing a decline in revenue, but last month, VIP inflow slightly increased and all branches recorded double-digit win rates, improving performance." The total number of VIP customers at the three Seven Luck branches last month was 2,466, about 20 more than the previous month, and their drop amount increased by 9.43% to 235.6 billion KRW.
Paradise, which operates branches at four locations including Walkerhill Hotel in Seoul, Paradise City in Yeongjongdo, Incheon, Jeju, and Busan, also saw casino revenue rise 30.2% month-on-month to 80.2 billion KRW last month. During the same period, the drop amount increased 23.1% to 667.5 billion KRW, and the hold rate rose 0.8 percentage points to 16.9%.
Paradise’s Chinese VIP segment showed a remarkable recovery. Last month, the number of Chinese VIPs visiting these four branches was 3,216, a 37.1% increase compared to the same period last year. This rise was larger than the 14.7% increase in the share of Japanese VIPs, Paradise’s main customer base, during the same period. The drop amount from Japanese VIPs exceeded 300 billion KRW for the first time on a monthly basis, reaching 308 billion KRW last month, while the Chinese VIP drop amount also surpassed 120 billion KRW at 124.8 billion KRW, marking the second time since February.
A Paradise official said, "We hold quarterly invitation events such as dinner shows targeting Chinese VIPs along with Japanese VIPs," adding, "Promotions aimed at attracting customers from the Chinese-speaking region, including a joint marketing agreement signed earlier this year with Trip.com Group, China’s largest online travel platform, appear to have been effective."
In addition, the Jeju Dream Tower complex resort casino operated by Lotte Tour Development recorded net revenue (total revenue minus agent commissions, etc.) of 33.012 billion KRW last month, entering the 30 billion KRW range for the first time since its opening in 2021. During the same period, the casino table drop amount rose 28.3% month-on-month to 159.6 billion KRW, with 37,494 visitors. Both the drop amount and number of visitors were the highest monthly figures to date.
Unlike GKL or Paradise, Lotte Tour Development’s casino has a 90% mass (general customer) ratio and fewer branches, resulting in a lower drop amount, but its hold rate of 18.7% is higher than competitors’ who are in the low teens, which is analyzed to have improved profitability.
A Lotte Tour Development official said, "With the normalization of direct overseas flights to Jeju, the number of foreign tourists mainly from Asia visiting Dream Tower has greatly increased," adding, "Last month, the resumption of direct flights on the Tokyo-Jeju route also contributed to the increase in Japanese tourists and revenue growth."
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