South Korea is considering raising the maximum contribution payable by foreigner-only casinos to the Tourism Promotion and Development Fund, a revenue-based industry levy, from 10 percent to 15 percent of revenue.
The change could increase annual payments by the six highest-revenue casinos outside Jeju by KRW30 billion to KRW50 billion ($20.2 million to $33.6 million).
Local media outlet Edaily reported, citing the Ministry of Culture, Sports and Tourism and National Assembly sources, that the proposal forms part of a broader regulatory overhaul.
The package also includes periodic license renewals and prior approval for changes in major shareholders.
The existing progressive contribution structure would remain, rather than applying the 15 percent rate uniformly. Higher-revenue operators would face the largest increase, with detailed thresholds to be set through an enforcement decree.
The ministry argues that the funding framework has remained largely unchanged since 1995 despite substantial industry growth. Data cited by Edaily showed total foreigner-only casino revenue has increased 10.3-fold since then, while average operator revenue has risen 7.8-fold. Sector revenue reached about KRW2.2 trillion ($1.48 billion) last year.
Operators warn of investment squeeze
The Korea Casino Association opposed the proposal, arguing that many operators already fall into the highest contribution bracket and effectively pay 10 percent of revenue. It warned that combining a higher levy with license renewals and shareholder approval requirements could increase policy uncertainty.
Jeju casinos would be excluded because they operate under the island’s separate legal framework and would require separate legislation.
Maeil Business reported that Lotte Tour Development, Paradise Co. and Grand Korea Leisure (GKL) shares fell 14.6 percent, 13.5 percent and 10.8 percent, respectively, on July 14th after the proposal emerged. Shinhan Investment & Securities analyst Ji In-hae estimated the industry’s overall burden could approach 20 percent if the cap rises.
KB Securities analyst Choi Yong-hyun warned that lower cash generation could constrain investment as Korean operators prepare to compete with Osaka’s integrated resort, scheduled to open in 2030.
However, Finance BigGo reported that some analysts expect implementation no earlier than 2028 and believe much of the policy risk is already reflected in casino share prices.
