South Korean casino operator Grand Korea Leisure (GKL) has struck a deal with fintech firm Dragon Inc to incorporate cryptocurrency technology into GKL’s VIP gambling rooms.

This week, the Hong Kong-based Dragon Inc announced that it had inked a strategic partnership with GKL to incorporate its Ethereum/ERC20-based Dragon Blockchain platform and its Dragon Coin (DRG) crypto-token in VIP gaming rooms at GKL’s three Seven Luck-branded casinos. Dragon Inc hopes to open its first Seven Luck crypto VIP room by April.

South Korea has developed a reputation as a cryptocurrency hotbed, although the government has at times expressed unease with the idea of linking crypto trading with its strictly controlled gambling market. It will be interesting to gauge the government’s response to Dragon’s GKL deal.

Dragon’s business model is based on reducing the estimated 5% charge that junkets pay to move funds from mainland China to regional gaming hubs such as Macau, Junket customers, meanwhile, pay anywhere from 5-7% to repatriate their winnings.