Good news from South Korea. Paradise Co. Ltd has managed to dispense with 91% of its losses in an amazing upward swing in Q2, 2018. The country has benefited from the casino-action-hungry Japanese gamers who have found South Korea quite the tempting place for a quick spin of the roulette wheel.
Japan Before Its Own Casinos
In the space of one year, the casino has managed to efface the bulk of its deficit which raged at $17.37 million one year ago and at the time of its Q2 reporting was barely $1.5 million. But the numbers were even more staggering and hopeful.
In the second quarter of 2018, the loss of the casino was mere $60,000 whereas over he same period last year it had the stonking $24.30 in total losses at Q2 2017. The first half of 2018 has also proved quite successful for the company, with its profits going all the way up to $1.25 million in net revenue.
Paradise has been investing handsomely in its properties targeting foreigners, including Walkerhill in Seoul, Jeju Grand on Jeju Island and others. Jeju was recently the venue of the Triton Series Poker Tournament.
The Success Story of the Quarter
In the company’s own report, the success story of the quarter is no chance thing either. It’s occasioned by the ebbs and flows of visitors from abroad. However, this quarter was particularly carried on the appetites of Japanese gamers who came in droves, Paradise had to say.
The boom of Japanese tourists seeking casino action may be drawing to an end though, as the country’s own regulatory climate is letting up significantly. Casinos are now a thing in Japan and international operators will be allowed to open doors in a large swathe of a future hotel & casino resort, draining not only loyal customers, but also creating a new competitive hub in the region for everyone.
South Korea and Macau do have reasons for concern as Japan is well-poised to take the region by a patient storm. The government of Shinzo Abe, Japan’s prime minister has also been spearheading the campaign both in the Diet and among grassroots.
Gambling in Asia
While casinos such as Paradise are carried on the back of their convincing quarterly results, Asia is reshaping. Its gambling activities are expanding, but the focus is clearly on the periphery, particularly around Japan.
China continues to hold a hawkish stance on the activity at home, turning a blind eye in Macau. However, as it does so, Chinese gamers are flocking abroad. Experts forecast that Japan is going to have a strong pull on the region, attracting regional and foreign gamers both.
If done right Paradise’s profits will continue to soar until around 2020 when Japan will cause a stir in the region with the first operators shifting into gear. The resorts are expected to have a Las Vegas-like capacity and the government and investors are comfortable that they will be filled easily. Some are even mulling further expansion.