As confirmed cases of the Covid-19 (Coronavirus) continue to increase worldwide, neighboring countries have started to be on red alert and have become more wary of the current situation. Inevitably, casinos which are regularly visited by citizens and tourists alike, are also being more cautious while taking up preventive measures to promote good health and safety.
Kangwon Land casino shutdown, losses to hit $22m
Kangwon Land, South Korea’s largest casino and the only establishment where Korean nationals are permitted to gamble, have recently announced that it would be extending its temporary shutdown until 6am on the 29th due to growing concern about community infections. It initially declared a halt on gaming operations from noon on 23 February, Sunday to 6am 26 February, Wednesday after the government raised its alert status to the highest level as South Korea became the most coronavirus-hit country outside of China.
With new cluster outbreaks in the country, the total number of exposures rose up to nearly 2,300. The shutdown period of Kangwon Land will be utilized to intensively carry out additional protection and disinfection of its gaming area and to prepare for the casino’s eventual reopening.
After a strong performance in the past year, Kangwon Land estimates its losses to be around KRW 22 Billion (~USD 18.1 Million) with regards to the shutdown. Although the casino is arranged to reopen this coming Saturday, it is still uncertain if the intended schedule will be followed completely given the rapidly rising viral tally. In addition, some Asian countries have also imposed a temporary travel ban which in turn will negatively affect the performance of Kangwon Land.
Catastrophic outlook for Macau’s Gaming Revenue
With the two-week-long suspension imposed by authorities on Macau casinos and the travel limitations around the Asia-Pacific region, it is not a surprise that Macau’s recorded Gross Gaming Revenue (GGR) declined tremendously.
Analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu mention “We estimate February to be down 90% and March potentially to be down 80% (assuming no significant improvement in travel). The operators we have spoken with do not see any clarity on timing of recovery at this time.”
“IVS and group visas into Macau are suspended and most transport is severely disrupted with most airlines cancelling or limiting flights into Macau and surrounding airports,” they said.
Currently, there is no clear indication of any potential improvement towards Macau’s GGR outlook with the Coronavirus continuing to spread around the region. It is unfortunate yet expected that the decline will not ease anytime soon.
New casino in Vietnam to begin construction in 2021
KN Cam Ranh Co Ltd., promoter of beach resort and new gambling facility KN Paradise Cam Ranh, has recently confirmed that plans to establish a casino complex spanning 40 acres is currently underway.
Taking in the size of the project, it is expected to service 2,000 electronic gaming machines and 200 gaming tables. The company reported that it had already obtained approval for the new facilities to be built and had received an investment certificate from the government of Vietnam for the casino complex. With construction expected to begin next year, the first phase is set to be ready within three years.
The company’s investment deputy-general director adds, “It is with great enthusiasm that we are adequately ready to cooperate with the international casino gaming operators for the development and operation of our integrated resort in Cam Ranh. Undeniably, our strategic location and development plan will create an indispensable addition to the Pan-Asia integrated resort marketplace.”
The resort will provide a large selection of both residential and hotel facilities, entertainment amenities and multiple shopping establishments. With a golf course and the Wyndham Grand KN Paradise Cam Ranh hotel already built, the development is already making its way to most likely becoming a world-class destination.