Casino revenues in November at Grand Korea Leisure Co Ltd (GKL), a foreign-only casino operator in South Korea, dropped 50.6 percent from October to below KRW5.49 billion (US$5.0 million), and decreased 87.8 percent year-on-year the company said in a Korea Exchange filing on Thursday.
The result was a softening in October, which saw casino revenues increase 18.0 percent month-on-month, and a modest year-on-year decrease to 69.5 percent.
Grand Korea Leisure is a division of the Tourism Organisation of Korea, which is in turn affiliated to the Ministry of Culture, Sports and Tourism of South Korea. Under the Seven Luck name, the casino-operating entity operates three foreign-only casinos in South Korea: two in Seoul, the capital, and one in Busan, the southern port city.
The country’s Central Disaster and Safety Countermeasures Headquarters agreed in the second half of November to tighten so-called social distancing protocols nationally as a result of a rise in Covid-19 cases in South Korea, and especially in Seoul, with measures deemed to be more stringent than previously applied to Seoul and the surrounding area.
In South Korea, the tightening of measures to fight Covid-19 has affected casino businesses across the region. In a filing earlier this week, Grand Korea Leisure announced that its Busan Lotte location will be shut down from 12 a.m. on Tuesday (December 1) until 9 a.m. on December 15. due to efforts to restrict the local spread of the coronavirus that triggers Covid-19.
In a November 22 filing to the Korea Exchange, Grand Korea Leisure said that Gangnam Coex Seoul and Gangbuk Millennium Seoul Hilton (pictured in a file photo)-two resorts in the metropolitan area of the capital Seoul-would be closed from 12 am on November 24 to 9 am on December 8 for the same reason.
As a result of the three temporary closures, the firm said it projected the related economic loss to hit KRW5.5 billion, judged against average daily net sales for the period from July to September.
For November, GKL’s table game revenue was almost KRW4.09 billion, down 55.4 percent from the KRW9.16 billion achieved in October, and down 89.9 percent year-on-year.
Machine game revenues in November were below KRW1.40 billion, a decrease of 28.3 percent month on month, and a 70.2 percent contraction on the almost KRW4.69 billion reported in November 2019.
Data from last month showed that cumulative casino revenues were just above KRW186.02 billion for the first 11 months of 2020, down 57.9 percent from almost KRW441.58 billion aggregated in the same period of 2019.
Cumulative table game revenues so far this year have been approximately KRW161.91 billion compared to KRW388.02 billion in the same period of 2019, a 58.3 percent deterioration.
Accumulated year-to-date machine game revenues amounted to KRW24.11 billion, down 55.0 percent year-on-year from KRW53.56 billion in 2019.