Mohegan Sun heats up S.Korea casino competition with $5 bln proposal (updated)

PARADISE

21/04/2015 06:20

* Mohegan Sun would invest $1.6 bln by 2020 
    * S.Korea to pick operators for two casino licenses by year 
end 
    * Chinese tourists to S. Korea jumped 42 pct in 2014 
 
 (Adds details on proposed resort, competitors) 
    By Joyce Lee 
    SEOUL, April 21 (Reuters) - The operator of the U.S. Mohegan 
Sun casino has partnered with South Korea's largest airport in a 
proposal for a $5 billion casino resort, putting its hat in the 
ring for one of two gaming licenses set to be decided on this 
year. 
    South Korea has become one of Asia's fastest growing casino 
markets with gaming companies lured by a 42 percent jump in the 
number of Chinese tourists to a record 6 million last year. 
    The Mohegan Tribal Gaming Authority and Incheon 
International Airport said their proposed resort would be 
developed on the grounds of the gateway airport to Seoul, which 
serves more than 45 million visitors annually. 
    Mohegan Sun would spend about $1.6 billion on the first 
stage of the resort by 2020. The resort, due to be completed in 
2040, would include a foreigners-only casino with 250 gaming 
tables, a 1,000-room hotel, an arena for up to 20,000 people and 
an amusement park, the companies said. 
    The South Korea government has said it will decide on 
"around two" new gaming licenses by the end of this year. The 
new casinos would be aimed at catering to foreign visitors as 
Seoul bars locals from entering all but one of its 17 casinos 
and has no plans to change its policy. 
    Also competing for a license are Hong Kong's Chow Tai Fook 
Enterprises Ltd with a proposal for a $2.6 billion resort, which 
would be near Incheon airport too, and Philippines' Bloomberry 
Resorts Corp  BLOOM.PS  which has plans to invest $1 billion in 
a casino complex.  
    Bloomberry, which has not said where the new casino would 
be, has bought an island off the coast of Incheon and bought an 
existing casino in Jeju Island. If it decides to build the  
integrated casino resort in Jeju it would not need a new 
license. 
    Most of South Korea's current casinos are tiny by the 
standards of Macau or Las Vegas. Casino resorts include one 
being built by South Korea's Paradise Co Ltd  034230.KQ  and 
Japan's Sega Sammy Holdings Inc  6460.T  and another under 
construction by Caesars Entertainment Corp  CZR.O  and Lippo Ltd 
 0226.HK . Both will also be near the airport. 
    
 
 (Editing by Tony Munroe and Edwina Gibbs) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: SOUTHKOREA CASINO/MOHEGAN