Las Vegas Sands Proposes $4.5 Billion Casino in South Korea

Las Vegas Sands Corp.has made a $4.5 billion proposal that would see a casino and a resort constructed in Busan, the second largest city in South Korea. However, the casino will be built only if the South Korean government allows Korean nationals to enter and play inside.

South Korea has 17 licensed casinos that bring tourists into the country and boosts the economy, but only one of those is open to locals. Kangwon Land Casino, placed in a remote mining area of Gangwon province, permits entry to Korean citizens, but taking pictures at the casino or admission after consuming alcohol is strictly forbidden.

As proof that gambling is very popular among South Korean citizens, Kangwon Casino generates more gambling revenue than all foreign targeted casinos collectively. Las Vegas Sands sees a great business opportunity in South Korea where most of the gambling revenue is generated by Chinese VIP players. The government has also implemented tight regulations to prevent gambling addiction.

There is a lot of controversy surrounding those regulations because it seems that Kangwon Land Casino doesn’t pay attention to addicts who visit the casino. According to the koreaherald.com, the casino is preventing civic groups who are willing to help those with gambling addictions at the Kangwon Land, and the casino has also increased the maximum bet to 15,000,000 Won from the previous 6,000,000 Won.

Even though foreigners are allowed to gamble at Korean casinos and Chinese VIP players are regular guests, the Sands believes that a healthier and bigger profit can be reached if Korean nationals are allowed to gamble. The company became interested in the South Korea casino market after the chief executive of Marina Bay Sands, George Tanasijevich, had a sit-down with Busan Metropolitan City Mayor Suh Byung-soo.

It seems that Tanasijevich was very convincing because Byung-soo called on the central government and said that the casino laws should be revised. A Sands casino in Busan would certainly promote tourism, increase tax revenues. and generate more jobs, which is especially important now that the South Korean government is faced with declining tax revenues.

South Korea has already approved casinos by Caesars, Lippo Ltd., and Japan’s Sega Sammy Holdings, but none of them will allow locals to gamble. If the Las Vegas Sands gets the approval to build a casino where locals can play, there is a chance that existing proposals will get disrupted.

Until laws are changed, however, Koreans are not allowed to gamble at the local casinos of their choosing.

Photo: www.jewishbusinessnews.com