- MGE begins expansion in South Korea
- $5-billion resort to be concluded by 2022
- Caesars plans on a $700-million project
Tribal operator Mohegan Gaming and Entertainment has begun the development of an Incheon-based casino in South Korea after clearing all regulatory procedures.
Mohegan Starts Developing Casino in South Korea
Mohegan Gaming and Entertainment President and CEO Mario Kontomerkos has announced the company’s plans to expand into South Korea. According to Mr. Kontomerkos, the tribal operator has already secured the regulatory clearance to push on with a property in one of the largest Asian gaming huts, a GGRASIA report has confirmed.
The property will open in Incheon, South Korea, where development has already started, as Mohegan has already obtained the necessary building approvals.
We have begun to mobilise construction at our development site in Incheon, South Korea, having completed our negotiations with our general contractor and following the receipt of all necessary construction permits and approvals.
In light of intensifying competition in the region, including plans to open an Integrated Resort in Japan by 2024 at the latest, South Korea is responding by trying to attract more big industry names. The relative protectionism that the industry enjoys has prompted Mohegan to expand far from home and into bol new markets.
Launching in Two Stages
Based on Mr. Kontemerkos’ statement, Mohegan should launch their project in two phases with an early launch in 2021 which will make the new casino operational and an expansion omve planned for 2022.
The new project will be located in the vicinity of the Incheon International Airpor where casino operators have been concentrating their efforts. Other companies with casino properties at Incheon include Paradise Co while Caesars Entertainment are planning on developing a $700-million casino project, which hasn’t yet been given the go-ahead.
Asia is an important market for brands whether they are based in the United States or elsewhere. Macau has been showing strong signs of growth, operating under the aegis of China – a gambling-averse country, everything points to a growing clout of the hub in Asia.
Meanwhile, companies continue to compete for an entry in the future Integrated Resort (IR), which is expected to become a serious competition to both South Korea and Macau in the next several years. With places like Australia and the Philippines offering fewer gaming options, new properties in the region will turn into a draw for gaming-minded holiday-goers.
With tribal operators holding a firm ground at home, expanding well overseas is a new and bold move. It allows operators to experiment in promising markets rather than fight or expand at home where far more big names are running their operations.
Originally from Connecticut, MGE has been pushing with an ambitious global move to break into new markets. The Inspire Integrated Resort has an estimated cost of $5 billion, a sum that dwarfs Caesars $700-million project. .