Once Japan’s Resorts Open, South Korea’s Casinos’ Future Is Doomsday: Expert

January 2, 2023 Japan Emerging Markets

The effort to open integrated resorts (IR) in Japan is still ongoing, but it is taking longer than anticipated. One expert in the gaming industry thinks the casinos could endanger South Korea’s casino industry once they start to appear on the country’s horizon.

There are several casinos in South Korea’s Jeju Island that are open only to foreigners. Given that there are few legal alternatives in the area, its location makes it a prime venue for international gamblers.

Yoon Tae-Hwan, an industry expert, predicts that Jeju Island may suffer when Japan fully legalizes casino gaming. Despite the fact that the first Japanese IR won’t likely appear until at least 2028, Yoon thinks Jeju should start preparing immediately.

Asian Gaming Could Be Swayed by Japanese IRs
Japan may adopt the IR plans Osaka and Nagasaki filed earlier this year by February 2023. Although the timeline has already moved by four to five years from its original predictions, the end is allegedly in reach.

Yoon, a professor at Dong-Eui University in South Korea, delivered a speech at the Jeju International Casino Policy Forum on December 19 and 20 and made his dire prognosis. He reportedly stated that once Japan’s IRs go into effect, the casino market on Jeju Island will “suffer serious setbacks.” Three of the market’s eight properties are presently closed.

Representatives from the majority of the region’s largest tourism-related businesses or entities attended the two-day event.There were Grand Korea Leisure, Jeju Shinhwa World, and Jeju Dream Tower present. Everyone was able to hear what the professionals had to say and make the appropriate arrangements.

Yoon claims that changing the paradigm at the casinos in Jeju is one of these preparations. It’s time to diversify rather than concentrate on Chinese high rollers, which has produced significant problems for casino owners elsewhere.

They should concentrate on the mainstream gambling sector instead. This is similar to the strategy that the casino owners in Macau are implementing to lessen their dependency on Chinese VIPs. They should collaborate closely with other tourism-related activities in the area to develop initiatives that benefit both parties.

It’s also time to embrace the future of digital technology. Yoon proposes that the casino industry should collaborate with South Korea’s expanding use of smart technology to improve business practices. If gaming properties are to compete with Japan, they must also be able to provide a full IR experience.

Plans Are Big in Osaka and Nagasaki
Osaka and Nagasaki, two Japanese prefectures, have ambitious goals for their IR initiatives. Both have put forth expensive and sophisticated designs as they have surged to the front of the IR race, ultimately ending up as the last two.

The Japanese government’s clearance of the projects has already experienced delays. Although that won’t happen, local governments are still waiting for a response and had hoped to reach an agreement before the year ended.

Osaka currently thinks that a decision would be made in January or February, which might cause further delays in the projects’ development.

As a result, the first IR in Japan might not exist until 2030. To prepare for what Yoon claims is imminent, Jeju Island and its tourism industry would have seven years to do so.