Uncasville, Connecticut-based Mohegan Gaming Entertainment (MGE) announced late last week that the company plans to start construction at the Inspire Integrated Resort adjacent to South Korea's Incheon International Airport before the end of the year. MGE owns and operates Mohegan Sun in Uncasville, CT, and owns or operates casinos in Atlantic City, Washington State, Pennsylvania and Louisiana.
"The company is in the planning stages of Project Inspire, a Korean joint venture that expects breakthrough development before the end ," MGE CEO Mitchell Grossinger Etesse said in a press release announcing third-quarter results
Inspire Resort is a joint venture between Incheon International Airport Corporation MGE (formerly Mohegan Tribal Game Agency) and KCC, a Korean chemical and auto parts manufacturer.
Taken together, the consortium's investment in the integrated casino resort is expected to reach US$5 billion if completed within 20 years. The first phase of the project, which is expected to be completed in 3-4 years, will cost about $1.6 billion and is the first for the Uncasville casino operator to enter the overseas casino market.
Located next to one of the busiest airports in the world can prove quite profitable. Koreans are not allowed to gamble in their own casinos, except at remote Kangwon Land casinos located far from the country's population centers. However, Koreans are expected to be attracted to the resort for various non-game attractions. In addition to casino games and top-notch accommodations, 200,000 square feet of retail, food, art, and music entertainment space are planned for the resort. According to previous reports, Korean culture, including K-Pop, will be celebrated and plans to share Native American culture.
The first phase will include a five-star luxury hotel complex, including three towers and more than 1,300 rooms and suites, an indoor outdoor amusement park at Paramount Studios, and a 215,000-square-foot casino offering 1,500 slot machines and 250 game tables.
According to operational results released last week, MGE's capital expenditure on the project reached US$14.6 million during the first three quarters of fiscal , which ended June 30.
All of the slots were up year-over-year, except for a flat overall revenue of $25.5 million. Q2 NET PROFIT FOR MGE WAS $350 MILLION, UP OVER 8% YEAR AGO. Through the company had posted a net income of $43.8, up more than 68% Y/Y.
