Stocks spike as Genting and Landing announce casino project in Korea
Stocks for Genting Singapore and partner Landing International Development shot up after they announced plans to develop a $2.2 billion casino resort on South Korea’s Jeju Island. The casino would target Chinese gamblers, who lack legal gambling opportunities at home.
The casino will be called Resorts World Jeju and is to be modeled after Genting’s Resorts World Sentoso in Singapore. In accordance with strict Korean gambling laws it will be open to foreigners, whom investors expect mostly to come from China.
Korea popular destination for Chinese
Online casinos in China are banned completely and while gambling is very popular among locals, land-based establishments can only operate in the Southern city of Macau. While the Chinese city of Macau is now the world leader in casino revenue, Korea is much more accessible for those coming from the Northern and Eastern parts of the country.
In addition, Jeju is a special economic zone which Chinese nationals do not need a visa to enter. 4.3 million Chinese tourists visited Korea last year, making up roughly one third of total visitors. Investors (including Vegas magnate Sheldon Adelson, who also owns casinos in Macau) are now viewing Korea and neighboring Japan as major potential casino markets.
Genting and Landing are putting up over $2 billion for what will be one of the world’s largest casinos, so clearly they expect Chinese gamblers to come in droves.