Inside Asian Gaming

september 2016 inside asian gaming 49 Asian Gaming POWER 50 2 0 1 6 Exactly what the future holds for the government-affiliated Grand Korea Leisure (GKL) is open to debate, but there is no doubt the wind has been knocked out its sails over the past 12 months. A subsidiary of the Korea National Tourism Organization, GKL was established in 2005 to promote tourism and raise funds, opening a number of foreigners-only casinos under its Seven Luck brand. For the most part the plan has worked, with GKL one of two companies – alongside Paradise Group – to dominate market share with around 90% between them. But cracks began to appear last June when six GKL employees were arrested in China for allegedly marketing the company’s casino operations to Chinese gamblers. While Paradise was also caught up in the scandal, the fact that GKL has government ties didn’t sit well with their primary market. How much this impacted the company’s decision last November not to bid for one of two new licenses issued earlier this year for integrated resorts in Incheon is unknown. It does, however, suggest its gaming ambitions are limited. Quite a time for Lee Ki-woo, who took over from Lim Byoung- soo as GKL’s President and CEO just a few weeks later, to come on board! With three IRs set to open in Incheon between 2017 and 2019, time will tell whether Korea’s 16 current foreigners-only casinos suffer the consequences. It’s a good thing that his casino operations comprise only a tiny percentage of Dhammika Perera’s vast fortune. Sri Lanka’s richest man already owns three of the nation’s four casino licenses and had positioned his holding company, Vallibel One, to take advantage of former President Mahinda Rajapaksa’s plan to improve tourism by issuing three new licenses for integrated resorts. But that plan was knocked on the head when Rajapaksa was defeated at the January 2015 election. Unlike his predecessor, new President Mithripala Sirisena brought with him a fierce anti-gambling policy and quickly confirmed there would be no new IRs built – including Perera’s US$300 million Queensbury proposal. Adding insult to injury, Sirisena has also introduced a US$100 levy on all people entering Sri Lanka’s casinos, including foreigners who comprise the vast majority of customers. And just a few months ago he confirmed that there would be no new investment in casinos in Sri Lanka allowed under his watch. In the meantime, Perera will no doubt carry on with his endless array of business interests but any dreams of expanding his local gaming empire appear to be on hold for now. Dhammika Perera CHAIRMAN AND MANAGING DIRECTOR Vallibel One Power 556 last 29 Score year Claims to fame Sri Lanka’s richest man Owns three of Sri Lanka’s four casino licenses 49