The two big state-run gambling firms, Kangwon Land and Grand Korea Leisure, have just taken divergent paths on the Covid-19 crisis.
Kangwon Land reopened its doors at the beginning of this week with a capacity limit on the casino floor of 1,200 people. It’s latest closure had lasted two months after being closed for a much longer period of five months in the spring and summer of 2020.
Meanwhile, Grand Korea Leisure announced that its Seoul casinos would remain closed until March 1, having originally suspended operations on November 24 of last year.
Kangwon Land also released its annual financial report for 2020.
Last year, Kangwon Land reported an operating loss of KRW431.6 billion (US$388 million) on a consolidated basis, which was its first annual loss since its founding.
Even the non-gaming division’s annual sales fell 58.3 percent to KRW74.2 billion.
The total number of visitors to Kangwon Land last year was 590,265, a 79.3 percent year-on-year decrease.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.