New Silkroad Culturaltainment Limited, operator of the MegaLuck casino in Jeju, reported a 68.3 percent increase in gaming revenue for the full year 2017.
The increase in gaming revenue, which reached HK$123 million, was driven by an increase in direct marketing and promotion efforts.
However, nearly a three-fold increase in expenses related to gaming operations caused gross profits on gaming operations to fall to HK$12.8 million, down from HK$39.1 million in 2016.
The company holds a 72 percent stake in the casino found in the Jeju KAL Hotel in South Korea, under the brand ‘MegaLuck Casino’.
The venue holds 19 Baccarat tables, one Blackjack table, one Cussec table, one Roulette table, 6 Texas poker tables, one three-card poker table and 24 slot machines.
“Despite the adverse impact as a result of the political tensions between China and South Korea, in particular, the implementation of retardation policies by China to discourage tourists, the Group had stepped up efforts to open up other markets so as to diversify our market risk,” said the company in its filing.
“During the year, we have set up representative offices in Seoul and Macau in order to reach out to our VIP guests and to optimize ancillary services in order to provide a better gaming and tourism experience for our guests,” it added.