South Korea’s casino market is still too small to benefit from a fully developed relationship with junket operators, according to a PricewaterhouseCoopers analyst.

Junkets have made themselves integral to Asian casino markets like Macau but PwC Korea partner Glenn Burm told GGRAsia that neither junkets nor Korean casino operators “have the volume to accommodate the costs” associated with bringing in foreign VIP gamblers.

More to the point, Burm said junkets have failed to gain a foothold in Korea because the casinos “prefer to do direct marketing to VIPs.” This results in fewer high-rollers making the trek to Korea but those who do generate more revenue for the casino because there’s no need to pay junket commissions

South Korea currently has 17 small casinos and a number of larger integrated resorts in development but Burm doesn’t believe the new venues will alter the junket dynamic. Burm says projects like the Mohegan Tribal Gaming Authority’s joint venture are “more of the US model,” i.e. focused on mass market gamblers, not VIPs.