South Korea casinos book losses, fear new COVID-19 shutdown

South Korea’s casino operators are counting the cost of their lengthy COVID-19 shutdowns even as the country braces for a new wave of infections.

On Tuesday, Kangwon Land, the country’s largest casino operator and the only gaming venue that is allowed to welcome local residents, reported that its revenue over the first three months of 2020 had totaled KRW236b (US$193m), a 36.7% decline from the same period last year.

Casino sales were down 39.2% to KRW200b. The company booked an operating loss of KRW186.8m versus an operating profit of KRW125.1m in Q1 2019, while after-tax losses were KRW156.1m versus a KRW102.4m profit last year.

The losses were in part blamed on increased payments to the casino’s host community, which is home to a shuttered coal mine and which has come to depend on the resort to offset the lack of mining income.