Korea Casinos Post 27% Revenue Growth on Tourist Surge

Korea’s three foreigner-only casino operators — Paradise, Grand Korea Leisure (GKL), and Lotte Tour Development — posted combined net sales of KRW334.1 billion in January and February 2026, a 27% increase over the same period in 2025. Combined drop, the total value of chips purchased by players, rose more than 10% to KRW2.1944 trillion.

Operator-by-Operator Breakdown

Paradise led the group by revenue, reporting net casino sales of KRW181.2 billion for the two-month period, up 26.1% from KRW143.7 billion a year earlier. Drop at Paradise rose 5.7% to KRW1.1682 trillion.

Lotte Tour Development recorded the steepest percentage growth among the three, with net sales rising 50.4% to KRW78.2 billion from KRW52 billion in the prior-year period. Drop climbed 43.3% to KRW434.5 billion, from KRW303.1 billion.

GKL reported net sales of KRW74.7 billion, up 11.8% from KRW66.8 billion. Drop at GKL increased 12.1% to KRW591.7 billion from KRW527.9 billion.

Tourism Recovery Drives the Numbers

Korea Tourism Organization data for January places foreign visitor arrivals at 1,265,658 — up 13.3% year-on-year and equivalent to 114.6% of January 2019 pre-COVID levels. Chinese tourists led with 418,703 arrivals, recovering to 106.6% of the 2019 baseline. Japanese visitors numbered 225,351, reaching 109.1% of that benchmark.

Jeju Island registered the sharpest gains from the Chinese rebound, with visa-free group travel arrangements and expanded direct flight routes amplifying inbound volumes. Lotte Tour’s Jeju Dream Tower casino attracted 96,966 visitors in January and February combined, a 40.6% increase year-on-year. Paradise’s Jeju Grand Casino posted net sales growth of 30.1% to KRW5 billion over the same period.

Japan’s IR development remains years away from completion, keeping outbound Japanese leisure spending in overseas markets — a dynamic that has benefited Korean and other regional operators that sit within direct travel reach.

VIP to Mass Market Shift

Korean foreigner-only casinos have historically generated a significant share of revenue from VIP baccarat, but general leisure tourists are now making up a growing proportion of casino visits. Operators are responding by strengthening mass-market capacity alongside existing VIP infrastructure.

Paradise acquired the Grand Hyatt Incheon hotel, located near its Paradise City resort on Yeongjong Island. Casinos account for 70% to 80% of Paradise City’s revenue. The acquisition gives the group additional hotel room capacity to accommodate mass-market visitors, while reserving VIP-grade amenities within the main casino complex.

The shift mirrors broader trends seen in Macau’s post-pandemic recovery, where mass gaming has displaced a significant portion of the VIP segment that dominated pre-2020 revenue mixes.

Analyst Outlook

Kiwoom Securities analyst Park Jeong-hyeon identified the weak Korean won and Japan’s domestic travel constraints as structural tailwinds sustaining inbound casino demand. He projects stronger earnings acceleration from Q2 2026 as tourism volumes consolidate further. The January-February data supports that view, with both drop and net sales running well ahead of year-ago levels across all three operators.

For GKL, whose properties are concentrated in Seoul and Busan, the steady double-digit gains reflect urban casinos benefiting from the overall visitor recovery rather than Jeju-specific factors. If tourist arrivals hold at current levels through the spring and summer travel season, and the won remains weak against the yen and yuan, Korea’s casino sector could be heading for its strongest annual performance in several years.

Source: Chosun