Mohegan Gaming and Entertainment, a U.S.-based tribal casino operator, said it has suspended financing to develop a casino resort in Incheon, South Korea. Mohegan Gaming and Entertainment said in a statement Monday that "a total of $1.55 billion will be used for the first phase of development in South Korea."
Mohegan Gaming is developing an Inspire Entertainment Resort (rendering photo), a complex that will house a foreigner-only casino near Incheon International Airport, Korea's main aviation hub.
"The project is expected to open to global travelers and game lovers in 2023, leading to a surge in local visits and a resurgence in the South Korean tourism industry following COVID-19," the company said.
Inspire Integrated Resorts Inc., a subsidiary of Mohegan Gaming in South Korea, has now raised "the funds needed to complete the construction of the project," according to a statement on Monday.
The funds include a total of $575 million in equity capital, including $300 million invested by Mohegan Gaming and $275 million raised through global private equity funds Bain Capital LP and MBK Partners. It also includes loans worth 1.4 trillion won (about $890 million) raised through a consortium of three domestic banks, KB Securities, NH Investment & Securities, and Hana Financial Investment.
The first phase of Inspire Resort will feature three five-star hotel towers, a 15,000-seat venue, a foreigner-only casino and a space for conventions, as well as shops, an indoor water park and a large outdoor theme space called "Family Park."
Construction of the "approximately 12%" project has been completed, the company said.
Monday's announcement quoted Bobby Sofer, international president of Mohegan Gaming, as saying: "We look forward to a significant post-pandemic rebound in the tourism and leisure industries, while at the same time opening and operating successful state-of-the-art resorts, we look forward to contributing to the Korean economy."
Mr. Soper said in August that the company aims to open casino projects in South Korea by the third quarter of 2023 at the latest.
