MGE begins expansion in South Korea$5-billion resort to be concluded by 2022Caesars plans on a $700-million project
Tribal operator Mohegan Gaming and Entertainment has begun the development of an Incheon-based casino in South Korea after clearing all regulatory procedures.
Mohegan Starts Developing Casino in South Korea
Mohegan Gaming and EntertainmentPresident and CEO Mario Kontomerkos has announced thecompany’s plans to expand into South Korea. According to Mr.Kontomerkos, the tribal operator has already secured the regulatoryclearance to push on with a property in one of the largest Asiangaming huts, a GGRASIA report has confirmed.
The property will open in Incheon,South Korea, where development has already started, as Moheganhas already obtained the necessary building approvals.
We have begun tomobilise construction at our development site in Incheon, SouthKorea, having completed our negotiations with our general contractorand following the receipt of all necessary construction permits andapprovals.
In light of intensifying competition inthe region, including plans to open an IntegratedResort in Japan by 2024 at the latest, South Korea isresponding by trying to attract more big industry names. The relativeprotectionism that the industry enjoys has prompted Mohegan to expandfar from home and into bol new markets.
Launching in Two Stages
Based on Mr. Kontemerkos’ statement,Mohegan should launch their project in two phases with an earlylaunch in 2021 which will make the new casino operational andan expansion omve planned for 2022.
The new project will be located in thevicinity of the Incheon International Airpor where casino operatorshave been concentrating their efforts. Other companies with casinoproperties at Incheon include Paradise Co while CaesarsEntertainment are planning on developing a $700-million casinoproject, which hasn’t yet been given the go-ahead.
Asia is an important market for brandswhether they are based in the United States or elsewhere. Macau hasbeen showing strong signs of growth, operating under the aegis ofChina – a gambling-averse country, everything points to agrowing clout of the hub in Asia.
Meanwhile, companies continue tocompete for an entry in the future Integrated Resort (IR),which is expected to become a serious competition to both South Koreaand Macau in the next several years. With places like Australiaand the Philippines offering fewer gaming options, newproperties in the region will turn into a draw for gaming-mindedholiday-goers.
With tribal operators holding a firmground at home, expanding well overseas is a new and bold move. Itallows operators to experiment in promising markets rather than fightor expand at ho 7BALL me where far more big names are running theiroperations.
Originally from Connecticut, MGE hasbeen pushing with an ambitious global move to break into new markets.TheInspire Integrated Resort has anestimated cost of $5 billion, a sum that dwarfs Caesars $700-millionproject. .
