The effects of the economic downturn on casino revenues in places such as Las Vegas and Macau do not seem to be mirrored by the performance of Korean casinos. Kangwon Land – the only casino in the country to allow citizens to gamble – reported its biggest ever profits in the first three months of 2009. Visitor numbers were up 9% but casino operating profit rose to 136 billion won (nearly US$109 million).

The Paradise Group, operating foreigners-only casinos in Korea since 1965, saw a 57.5% increase in sales for the quarter. However, recent moves by the government suggest that a cap on casino earnings may be just around the corner. This planned measure to limit gambling in Korea appears contradictory as citizens must travel to Kangwon Land resort to gamble and presumably gambling by foreigners at the other casinos would bring welcome tax revenue.

Following widespread scandals in the gambling industry over illegal gambling payouts on video gaming machines in arcades and bribery allegations concerning former officers of the Ministry and Culture and Tourism, the industry as a whole is not held in high regard in Korea. In consequence the government is less inclined to offer support for casino enterprises despite entering the market in 2006 with the state affiliated Seven Luck casinos.

Of seventeen Korean casinos three are Seven Luck, which in January reported record revenues. Kwon Oh-Nam, president and CEO of Grand Korea Leisure, part of the Korea Tourism Organization, is still hoping for expansion in the casino industry and to improve its image with the public. “It's becoming increasingly apparent that we can't overcome the current economic turmoil by relying on manufacturing exports alone. The service industries, including tourism, must have a bigger role in the rebound, and casinos could certainly contribute more than they do now.” (E-08.19.09)

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