Grand Korea Leisure reports sharp revenue decline in July

Jenny Ortiz August 6, 2024

South Korean foreigner-only casino operator, Grand Korea Leisure (GKL), experienced a drastic drop in its casino revenues for July 2024. The company’s earnings fell by 48.1 percent month-on-month and 38.2 percent year-on-year, bringing in KRW19.2 billion (€12.7 million).

Table games and machine revenues affected

Table game revenue saw a drop, decreasing by 51.6 percent from the previous month to KRW16.6 billion (€11million). This also represents a 40.4 percent decrease from the same period last year. On the other hand, gaming machine revenue experienced a smaller decline of 4.3 percent month-on-month and 20 percent year-on-year, totaling KRW2.66 billion (€ 1.78 million).

Increased drop amounts despite revenue decline

Interestingly, the total drop amount for July saw a modest increase of 2.6 percent from June, reaching KRW303.9 billion (€202 million). This figure also marks a 23.4 percent rise compared to July of the previous year.

Year-to-date performance

Looking at the broader picture for 2024, GKL’s total casino revenue for the first seven months of the year stands at KRW211.8 billion (€141million), reflecting an 11.4 percent decline year-on-year. Despite this, the table drop amount has risen by 23.4 percent to KRW2.16 trillion (€1.43 billion), suggesting an increase in betting activity.

Seven Luck casinos under strain

GKL operates three casinos in South Korea, specifically in Seoul and Busan, under the Seven Luck brand. The company, which functions as a ‘quasi-market-based public corporation’ under the Korea Tourism Organization, has seen varying performance metrics. The overall decline in table games and machine revenue points to significant challenges facing GKL as it navigates the current market conditions.

While Grand Korea Leisure has experienced a sharp decline in revenue for July 2024, the increase in drop amounts signals ongoing engagement from patrons. The reasons behind these mixed results remain unclear, leaving industry observers to speculate on the potential causes and future of GKL.

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