Key Moments:
- GKL reported KRW28.56 billion ($20.4 million) in casino sales for October, a 6.5% decrease year-on-year
- Revenue from machine games rose 24.8% year-on-year in October, despite a 0.3% monthly dip
- Year-to-date casino revenue climbed by 9.2%, totaling KRW347.28 billion ($247.8 million)
Monthly Performance Drops as Visitor Spending Slows
Grand Korea Leisure (GKL), which operates South Korea’s foreigner-only casinos under the Seven Luck brand, encountered a revenue slowdown in October. Casino sales for the month totaled KRW28.56 billion ($20.4 million), representing a 6.5% decline compared to the same period last year. Compared to September, GKL’s casino revenue fell 17.9%, outlining a starker month-on-month drop in both table and machine game activity.
Table and Machine Game Revenue Trends
Table games, traditionally GKL’s primary revenue generator, experienced the most significant downturn. Revenue from table games reached KRW25.15 billion ($18 million) in October, which amounts to a 19.8% decline from September and a 9.5% drop year-on-year. This reduction indicates fewer sessions or lower betting amounts among higher-value players.
In contrast, machine games provided a more stable segment. Revenue from slots and electronic games was KRW3.41 billion ($2.4 million), slipping 0.3% month-on-month but rising a notable 24.8% over the prior year. This trend illustrates sustained interest in lower-stakes, casual gaming, even as overall visitor spending softened.
| Category | October Revenue | Change Month-on-Month | Change Year-on-Year |
|---|---|---|---|
| Total Casino Sales | KRW28.56bn ($20.4m) | -17.9% | -6.5% |
| Table Games | KRW25.15bn ($18m) | -19.8% | -9.5% |
| Machine Games | KRW3.41bn ($2.4m) | -0.3% | +24.8% |
Year-to-Date Figures Highlight Continued Expansion
Despite October’s setbacks, GKL’s performance over the first ten months remains robust. From January to October, total casino revenue hit KRW347.28 billion ($247.8 million), marking a 9.2% increase compared to the previous year. Table games contributed KRW314.42 billion ($224.4 million), up 8.7%, while machine games generated KRW32.83 billion ($23.4 million), reflecting a 14.9% annual jump.
These figures point to ongoing momentum in South Korea’s broader tourism and hospitality sectors following the reopening of the country’s borders.
Tourism Patterns and Regional Competition
As GKL operates casinos restricted to international visitors, its results closely align with foreign tourism trends. With properties in Seoul’s Gangnam Coex, Hilton, and Busan, the company attracts travelers mainly from Japan and China. Improvements in flight access and visa regulations have gradually revived travel between major Asian markets. However, spending hesitancy among international tourists and evolving travel patterns have challenged sustained high-end play, as seen in October.
Regional contrasts are clear. Jeju Dream Tower, another foreigner-focused casino, recorded a 108.4% leap in October casino revenue year-on-year to KRW50.44 billion ($36.6 million). Factors such as improved connections for Chinese tourists and proactive marketing strategies fueled Jeju’s surge, underscoring how South Korea’s casino market recovers unevenly across different locations.
| Casino | October Casino Revenue | Year-on-Year Change |
|---|---|---|
| GKL | KRW28.56bn ($20.4m) | -6.5% |
| Jeju Dream Tower | KRW50.44bn ($36.6m) | +108.4% |
Sector Outlook and Ongoing Challenges
GKL’s October data reinforces that casino operators serving only foreign patrons remain particularly vulnerable to travel fluctuations. Shifts in international routes or visa policies can have immediate financial impacts. The latest results highlight a persistent fragility in high-end table game revenue, while machine games and casual play continue to show resilience.
GKL’s overall year-to-date growth provides some reassurance, but competitive pressures and unpredictable tourist flows suggest that continued gains will depend on the pace of market recovery and evolving visitor behavior in the coming months.
Strategic Focus for the Future
With October demonstrating that market recovery is anything but linear, GKL faces the dual challenge of reinvigorating table game participation and broadening its appeal amid intensifying competition. The company’s ability to adapt to shifting tourism patterns and consumer behaviors will be critical as the year progresses.
- Author
Daniel Williams
