Inside Asian Gaming

INSIDE ASIAN GAMING | October 2013 30 Of the 8 casinos operating in Jeju, one is managed by the KOSPI-listed Paradise Co. and another by the privately-held group company Paradise Global. GKL does not have a presence on the island, nor does it have plans or government approval to build any new venues in the country. One thing weighing against all the country’s foreigners-only casinos is the imposition of a 4% casino consumption tax beginning in 2014. The government is also proposing an additional 10% leisure tax on Kangwon Land to raise funds for infrastructure development in its host Gangwon province ahead of the 2018Winter Olympics. If that measure proceeds, some expect a leisure tax may also be imposed on the foreigners-only sector, though Goldman Sachs believes it will only apply to Kangwon Land while the country’s other casinos will be exempt. Looking ahead, the expiration of Kangwon Land’s exclusive right to serve domestic gamblers in 2025 presents a major opportunity for the leading foreigners-only operators. When that happens it’s probable one or more licenses will be issued in what is already a massive and lucrative sector, and Paradise Group looks to be the odds-on favorite to secure one of them. IN FOCUS Source: Ministry of Tourism, Culture and Sports, Goldman Sachs Research Foreigners-Only Casinos on Jeju Island Looking ahead, the expiration of Kangwon Land’s exclusive right to serve domestic gamblers in 2025 presents a major opportunity for the leading foreigners-only operators. Kangwon Land