Korean casino operators and tourism academics are calling for lighter administrative burdens and a broader rebranding effort as Japan’s planned MGM-backed integrated resort in Osaka moves closer to opening.
The appeal raised during a recent roundtable in Seoul reflects growing concern that the project could pull both tourists and capital away from Korea. According to The Korea Times the attendees of the discussion raised their concerns about how the Osaka integrated resort expected to launch in 2030 may attract a considerable number of South Koreans once the project is up and running.
The estimates of the number of visitors coming to the Osaka integrated resort were put at 7.6 million people per year and the overseas spending of the visitors is estimated at $1.9 billion per year. The magnitude of the project has turned it into a focal point of worry for Korean operators. The competition might affect not only particular companies but also the entire sector because of the delay and additional regulations of the local companies.
Kim Eom-kwon, Seven Luck Casino Team Leader at state-run Grand Korea Leisure, said the company felt a strong sense of crisis and wanted a regulatory environment that supported growth rather than one focused only on rules.
GKL operates 3 foreigner only casinos under its Seven Luck brand with 2 in Seoul and 1 in Busan. The company is majority owned by the Korea Tourism Organization which sits under the Ministry of Culture and Sports and Tourism. Lee Dae-shin, Kangwon Land Casino Strategy Team Head, said public enterprises are required to complete lengthy preliminary feasibility studies that can slow urgent upgrades.
He said more streamlined administrative procedures would be needed if Korea is to compete effectively with the upcoming Japanese resort. The comments reflected a wider concern that Korean casinos may struggle to respond quickly enough if approvals and administrative steps continue to move slowly.
Industrial Rebranding and Structural Scale
Besides regulatory reforms the discussion participants also noted that South Korea must get rid of the negative image of casinos and sell them as tourist entertainment facilities for families. The reason was that the gambling industry had to be looked at not only from a gambling perspective but as a part of the tourism and entertainment business.
Kim Jae-kyoung, Vice President of The Korea Times, cited Marina Bay Sands Casino in Singapore as an example of such image change for Korean casinos. People see Marina Bay Sands Casino as a high class convention center and entertainment facility and not just a gambling place he stressed and such rebranding efforts are badly needed by Korea.
It was clear from the discussion that branding and regulation have become two related issues with both operators and scholars emphasizing the need of improving branding in the gambling business if South Korea wants to keep competitive. The MGM Osaka casino resort under construction on the artificial island of Yumeshima in Osaka Bay is one of the most expensive casino resorts being built around the world. Its price tag is almost $10 billion. It is projected to attract almost 20 million tourists annually when it attains its maximum capacity.
MGM Resorts International says that the casino alone can earn its gaming revenues worth approximately $6 billion per year which would surpass the earnings of Macau most profitable casino and become the most profitable resort in all of Asia. Professor Kang Sung-sook, Tezukayama University, stated in his address at the meeting that this resort is not only meant to be a gambling casino but also a center for international business conventions and exhibitions.
