Sega Sammy Holdings says the second phase of the Paradise City integrated resort in South Korea will open before the end of March next year.
In a financial presentation, the Japanese partner in the resort, said the phase will include a club and a spa. In an earlier report presenting its financial performance for fiscal 2017, the company said Paradise City had seen strong visitation and a gradual improvement in profit.
Paradise City is a joint venture between South Korea’s Paradise Co. and Sega Sammy. It opened in April last year and was the country’s first true integrated resort. Although the companies have revealed few detailed financial statements on the performance of the resort, analysts say the ramp up has been slow due to Beijing’s decision to ban Chinese tour groups from visiting the country after Seoul deployed a U.S. anti-missile system.
Sega Sammy, which also makes gaming machines in Japan, says it expects to see an acceleration in the sales of No. 6-type pachislot machines from the second half of this year.
In fiscal 2017, sales were hit due to changes in regulation. The company sold just 85,000 units compared with 215,000 units for the prior year. Overall sales of pachinko machines were 140 thousand units up slightly from 138 thousand units for previous fiscal year.
Net sales in the segment were ¥105.6 billion ($964 million), down 28.7 percent.
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 local government has decided to extend tax incentives for the two casinos facing the economic challenges of the pandemic through the end of 2020. This two-month extension is estimated to reduce tax intake by about 7.3 million rubles (US$96,000).
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.