Caesars and R&F Properties form partnership for Incheon casino

Caesars Entertainment and R&F Properties have announced they will partner on a casino development project in South Korea, according to a filing from Guangzhou R&F Properties Co. Ltd on Monday.

Upon completion of the initial closing, each company will have a 50 percent interest in the JV company. The joint venture would then acquire LOCZ Korea Corp, which is the firm responsible for the development, construction and operation of the integrated resort.

According to the filing, the agreement contemplates an equal initial equity contribution by each R&F Properties and Caesars Entertainment of US$30.5 million, as well as potential further equity contributions of up to US$110 million.

Guangzhou R&F Properties said it intends to fund its commitment for the JV Company from the group’s internal resources.

The proposed casino project in Korea has had its hurdles over the last years, with industry commentators pessimistic of the potential outcome.

Earlier this year, Hong Kong-listed Lippo Ltd said it was withdrawing from its proposed joint venture with US gaming company Caesars Entertainment Corp. for the casino resort in Korea.

Lippo said there was a number of uncertainties relating to the project, including the uncertainty as to whether a final license would be granted and the terms of the grant. It said it was in discussions with Caesar's about the possibility for a third party to acquire the group’s interest in the project.  

Last week, Lippo confirmed that it was still in discussions with Caesars Entertainment Corp. regarding the disposal of its stake in the proposed casino.

In a filing to the Hong Kong Stock Exchange on Tuesday it said an exit agreement is likely to be reached soon.

More news from this jurisdiction

South Korea, Greater China, JapanTuesday, Mar 20, 2018

eSports global revenue for 2017 was estimated to be US$696 million and is expected to more than double to US$1.5 billion by 2020, with the Asia Pacific heading growth, according to Newzoo, a market intelligence firm.

South Korea, Mainland China, JapanTuesday, Mar 20, 2018

Mobile games are likely to grow by more than 8 percent per year through 2020, far outstripping growth for the PC and consoles, according to Daniel Kashti, chief marketing & commercial officer of Kama Games.

South KoreaFriday, Mar 16, 2018

The South Korean government has decided to fire all 226 employees of Kangwon Land who were found to have obtained their jobs through nepotism.

South KoreaTuesday, Mar 13, 2018

Interblock announced today the placement of the company’s first electronic table games in Korea at Golden Crown Casino Daegu.

South KoreaMonday, Mar 12, 2018

South Korea’s Ministry of Culture, Sports and Tourism office was raided on Saturday after allegations emerged that a former tourism ministry official had used his influence to secure jobs for four of his family members at Kangwon Land.

South KoreaThursday, Mar 08, 2018

A blockchain focused casino and VIP solution provider, Dragon Inc, has established a partnership with South Korea casino Seven Luck to develop its VIP rooms with gaming oriented cryptocurrency.

South KoreaMonday, Feb 26, 2018

Landing International officially opened Jeju Shinhwa World Landing Casino on Sunday, with the opening ceremony officiated by Dr. Yang Zhihui, chairman and executive director of Landing International and Jay Lee, CEO of Landing Jeju Development Co.