Gaming | Jeju casino sale ‘optimal’ for junket

Iao Kun Group Holding Company (IKGH) has said that it regards its recent acquisition of South Korea’s Jeju Sun Hotel and Casino as an “optimal way to diversify outside of Macau.”
An announcement was made last week that the Macau junket investor had bought the property on the South Korean island of Jeju from a Filipino casino operator of Bloomberry Resorts Corporation for the sum of USD102.6 million (MOP820 million).
“After a comprehensive review of opportunities, the company focused its efforts on the rapidly expanding market of Jeju,” the operator wrote in a statement.
While its former owners were not so optimistic about the property’s future, IKGH has noted the potential for VIP operations on the island to grow rapidly due to several factors including its close proximity to China, a visa-free policy for Chinese travelers and the island’s low gaming tax rate relative to other South Korean jurisdictions.
“IKGH sees significant potential […] given that VIP gaming in Jeju is currently underdeveloped,” the company added in its statement. “[We are] determined that the acquiring of the Jeju Sun Hotel and Casino and obtaining the non-expiring gaming license was the optimal way to diversify outside of Macau.”
The non-expiring gaming license will allow the new owner to install an unlimited number of gaming tables, though they will still be subject to regulatory approval.
Analysts said that the move was also a positive step for Bloomberry, according to gaming news website Calvin Ayre, as the sale would help eliminate the financial drag on the company’s operations. DB