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Management of Segasammi Holdings, a Japanese entertainment giant, said they expect the number of Chinese visitors to its joint venture, the Korean casino complex, to rise if it recovers. The company is an investor in Paradise City, a facility that includes foreigner-only casinos, in cooperation with Paradise Inc., a Korean casino operator.
Sega Sammy Group, which makes casino electronic games, Pachinko machines and home entertainment products, published a written translation of a presentation in English given to investors in July around the time the company reported fiscal first-quarter results for the year ended June 30, 2019.
According to Sega Sammy's management, among the sponsors of Paradise City (pictured), Japanese make up the largest single national delegation.
When asked about the nationality of visitors to South Korean casino resorts, the document quoted manager Sega Sammy as saying: "The figures are mainly based on the number of VIP customers, but Japanese customers were the most, followed by Chinese customers."
"The most common classes, excluding VIPs, also account for dozens of percent of the total number," added Sega Sammy's management.
On Tuesday, Paradise Co. reported a bigger loss in the second quarter, despite higher sales, driven by higher casino sales. Paradise Co. said casino sales in Paradise City rose 61.5 percent year-on-year to 86.35 billion won ($70.59 million) in the three months to June 30, a "high."
The South Korean company said casino losses in the second quarter rose 33.2 percent year-on-year to nearly 1.85 trillion won, helped by its "China VIP Recovery" sponsorship.
According to Paradise Co, Japanese VIP customers accounted for 34.6 percent of the company's total casino table drop from April to June. Chinese VIP customers for the company's casinos came in second, accounting for 30.5 percent of the total table drop during the period, with contributions rising 66.1 percent year-on-year to about W563 billion.
In a transcript published last week, Segasami's management commented on the Paradise City business outlook: "Before the opening of Paradise City, we expected many Chinese VIP customers to visit Paradise City, but the problem between China and Korea remains unresolved, and Japanese customers are now making up for the losses.
"Short-term sales fluctuate based on table drops as well as retention, but we believe there will be an upside factor when Chinese visitors to Paradise City recover."
Paradise Co. operates three different casinos in Korea: Walkerhill in Seoul; Jeju Grand in the south; and Busan Casino in the southern city of Busan. Only foreign gamblers can enter the casinos.
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