TLDR KB Securities expects the decline in chip purchases at South Korea’s foreigner-only casinos to ease after China’s October 22 offshore trust tax deadline. Lotte Tour Development’s third-quarter casino visits are estimated to rise nearly 9%, but drop per visitor and revenue are expected to fall 5%. Paradise Co., Lotte Tour Development, and Grand Korea Leisure all posted lower casino drop in September than in August. Macau’s September gross gaming revenue fell 1.2% year-on-year, which one analyst linked to Chinese capital controls. South Korea is weighing a plan to raise casino contributions to a tourism fund from 10% to 15% of revenue.
South Korea’s foreigner-only casinos could see the decline in customer chip purchases ease after China’s offshore trust tax deadline on October 22, according to KB Securities.
The outlook comes as operators deal with weaker spending per visitor, tighter Chinese capital controls, and a proposed rise in contributions to a government tourism fund.
KB analyst Choi Yong-hyun said China’s closer scrutiny of wealthy individuals is not a temporary factor. Still, he expects the decline in casino drop to end once the deadline passes, South Korean newspaper Maeil Shinmun reported on Tuesday.
The drop measures how much money customers exchange for gaming chips. It differs from visitor numbers, which can rise even when each customer spends less.
More Visitors, Less Spending Per Guest
KB Securities estimated that Lotte Tour Development’s third-quarter casino visits would rise nearly 9% from a year earlier. However, it expects drop per visitor to fall 5%, with revenue also down 5%.
The forecast shows a gap between attendance and spending. More customers were expected to visit, but each one exchanged less money for chips.
The pressure is not limited to one company. Daol Investment & Securities said Paradise Co., Lotte Tour Development, and