Mohegan’s Korean Casino Hits Ground Running Despite Early Losses

Despite early financial challenges, Mohegan’s new casino in South Korea, Incheon Mohegan INSPIRE, is exceeding expectations.

A CBRE study predicts that by 2024, the resort will turn a profit (positive EBITDA). This optimistic forecast aligns with Mohegan’s record-breaking $461.73 million in quarterly revenue.

Since its March premiere, INSPIRE is doing better than anticipated. 40% of the total is anticipated to come from gaming revenue in the first two months. High occupancy, effective promotion, and an increase in Korean tourism, especially from China (up 22% since the casino opened), are cited by analysts.

According to early statistics, INSPIRE is expanding its market share. Although rival Paradise City recorded a 4% increase in total gaming, mass-market play saw a 7% decrease.

The average nightly fee for a king room at INSPIRE is $240, which is in line with expectations.

Even though the casino’s opening costs are the cause of the initial losses, experts believe they will only last temporarily.

The positive impact extends beyond INSPIRE. CBRE highlights the potential benefits of increased tourism and competitiveness for the whole gaming sector in Korea.

Analysts forecast that INSPIRE and the larger Korean market will continue to grow, enhancing South Korea’s standing as a prominent gaming destination, once visitor numbers from significant Asian economies recover.

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Original Story by: Asian Gaming Brief