Kangwon Land Casino temporarily closed in response to coronavirus fears

In South Korea and the operator behind the Kangwon Land Casino has temporarily closed the venue until Wednesday morning in an effort to help stop the spread of the highly-contagious coronavirus strain.

According to a report from GGRAsia, Kangwon Land Incorporated shuttered the nation’s only casino that is accessible to locals yesterday evening after the government of South Korea raised its alert level regarding the outbreak to its highest ‘red’ degree.

Deadly disease:

According to the report, the coronavirus strain, which is officially known as 2019 novel coronavirus (2019-nCoV), was first reported in the Chinese city of Wuhan in early-December but has since spread to countries as distant and Italy, Australia and the United States. The ailment causes pneumonia-like symptoms such as high fevers and coughs and has so far infected more than 800 South Koreans and led to seven local deaths.

Financial fallout:

Kangwon Land Casino is located in the rural Gangwon Province approximately 93 miles from Seoul and offers patrons a selection of about 960 slots as well as some 100 gaming tables. The property saw its net profit for 2019 increase by 12.7% year-on-year to just over $274.8 million due to stronger sales and lower costs with the temporary shuttering likely to negatively impact its coming full-year figure to the tune of approximately $9 million.

Rising risk:

Inside Asian Gaming cited financial services firm JP Morgan as detailing that the interim shutdown could very well lead to Kangwon Land Casino recording a 4% decline year-on-year in first-quarter revenues to about $296 million. The brokerage moreover hinted that the South Korea’s collection of over 20 foreigner-only casinos may soon follow suit by either temporarily closing or following the example of compatriots in Macau by running reduced services.

Reportedly read a filing from JP Morgan…

“Also the question remains if foreigner-only casinos will follow suit, though the possibility would not seem high as their utilization rates are typically less than half of Kangwon Land Casino’s anyway.”