R&F Properties, a Hong Kong-listed company that bought out Caesars Entertainment’s share in a joint venture project in Incheon, South Korea, needs government approval to continue with the development.
The Ministry of Culture, Sports and Tourism will give its decision and likely impose some conditions to the license, a local source said.
If the MSCT fails to approve the takeover of the license, R&F Properties will need to submit an application for a new one.
U.S. casino operator Caesars Entertainment has become the latest operator to be allowed to shed its coronavirus operating restrictions in Las Vegas. Team Members will still be required to wear masks at all times. Guests will be required to wear masks unless actively smoking, eating, or drinking.
U.S. casino operator Caesars Entertainment said its first-quarter 2021 results were a significant step up from its fourth-quarter 2020 results, with consumers' behavior starting to return to normal following a difficult year.
U.S. casino operator Caesars Entertainment has announced the completion of its acquisition of William Hill for approximately $4 billion.
Hong Kong-listed R&F Properties is seeking new financing and a casino operator partner for the Midan City development in Incheon, attempting to recover from Caesars Entertainment’s abandonment of the partnership.
South Korea, which attracted significant interest when it first opened for foreign investors, is now seen as holding limited appeal unless the government agrees to relax its stance on local gaming.
South Korean IRs and casinos have received some positive news as companies try to recover from setbacks that were mainly the function of the Covid pandemic.
In a report last year, ratings agency Moody’s predicted a surge in merger and acquisitions between online and land-based gambling operators as the latter seek to cement new revenue streams after the chaos wreaked by Covid-19.
Caesars' Entertainment CEO Tom Reeg responded to an analysts' question on the sale of its Korea venture by saying: "Korea has gone, we sold it for some barbecue pork. We sold it back to our partners and have no more commitment. We're out."
Caesars Entertainment posted a loss for Q4 of $555 million compared with a $13 million profit in the prior year, but said it has seen a pick up in demand in the New Year, especially at its regional properties.
The reports in the Korea media last week have proven to be correct: Caesars Entertainment has withdrawn from its project in Incheon, and in doing so gave up its last interest in Asian gaming under its new, US market-focused leadership.