Caesars Gets Much Needed Boost After Obtaining South Korean Casino Licence
The largest U.S. casino company Caesars Entertainment released their 2013 results last week. As we reported the numbers were not encouraging to say the least. Besides their Interactive division all sectors were down. The most worrying factor for Caesars is their massive debt which they plan through restructuring to bring down. Shares in Caesars jumped on Tuesday after it was announced that they have obtained a preliminary license to build a casino in South Korea.
Asia is seen as potentially the most lucrative gambling market. Macau is currently the largest gambling market with revenues reaching over $45 billion annually and growing at a steady pace. Gambling mogul Sheldon Adelson recently was quoted as saying he would “do whatever it takes” to get a foothold into Japan.
This latest news from Caesars could not come at a better time as they are under pressure to turn things around. Being the second largest casino company in the world after Las Vegas Sands comes with expectations from investors. In terms of the agreement Caesars formed a joint venture with the Hong–Kong based builder Lippo Group and OUE in Korea.
CEO of Caesars Gary Loveman commented on the deal and said,” Foreign visitation to South Korea has grown significantly and we look forward to creating a world-class destination to further support Korea’s economic growth and tourism goals.”
The 2018 Winter Olympics in Pyeonchang are expected to attract large numbers of visitors of which Caesars hopes to cash in on. Caesars shares got a boost of 3.5% on Tuesday on news of the proposed venture.