Lotte Tour Development is set to launch a new rolling commission programme at the Jeju Dream Tower in May, a move that could generate more than KRW 100 billion ($66.4 million) in annual revenue, according to Hana Securities. The brokerage said the initiative could strengthen the casino operator’s position as competition for premium Asian gaming customers intensifies.
The programme is designed to take advantage of South Korea’s lower casino tax structure. Korea applies a 15 percent casino tax rate, significantly below Macau’s 40 percent rate. This allows the Jeju Dream Tower to offer more attractive commission packages to junket operators and high-value players.
Local media outlet Aju Press reported that Hana Securities identified the new rolling commission system as one of three main growth drivers supporting its positive outlook on Lotte Tour Development.
Lower tax rate creates competitive edge
According to Hana Securities, Jeju Dream Tower has more freedom to raise commissions while maintaining profit margins because of the reduced tax environment. More high-end foreign players, especially from China and other Asian markets, might be drawn to the property as a result.
The brokerage recently named Lotte Tour Development its top leisure sector pick, citing improving gaming performance and rising tourist arrivals in Jeju.
The casino business has already shown strong momentum. In the first quarter of 2026, casino revenue climbed 40.3 percent year on year to KRW 118.6 billion ($80.86 million). Visitor entries increased 37.3 percent to 150,553 during the same period.
Table drop, which measures the amount exchanged for gaming chips, rose 36.7 percent to KRW 573.9 billion ($382.0 million).
Casino floor expansion supports growth
Hana Securities also highlighted the ongoing expansion of gaming capacity at the Jeju Dream Tower.
The number of gaming tables increased from 149 in 2024 to 169 by the first quarter of 2026. The operator plans to add three more tables later this year.
Slot machine capacity is also expanding. Machine numbers are expected to rise from 287 in 2025 to 371 during 2026.
The brokerage said the larger gaming floor should help the property accommodate higher player volumes and improve overall gaming activity as tourism demand continues to recover.
More hotel rooms allocated to casino guests
Another major growth driver is the increased allocation of hotel rooms to casino customers.
The Jeju Dream Tower integrated resort has 1,600 hotel rooms. Previously, around 30 percent of the inventory was reserved for casino complimentary guests. That share has now increased to between 45 percent and 50 percent.
Hana Securities estimated that if the allocation rises to 60 percent, monthly casino revenue could reach KRW 60 billion ($39.82 million).
The brokerage said higher room allocation supports premium player retention and encourages longer stays at the property.
Strong earnings underline momentum
Lotte Tour Development reported strong first-quarter financial results on May 14.
Operating profit surged 121.5 percent year on year to KRW 28.8 billion ($19.2 million), while total revenue increased to KRW 156.2 billion ($104.1 million). Operating margin improved to 18.4 percent from 8.3 percent a year earlier.
The casino segment remained the main contributor to growth. The property’s casino hold rate reached 22.6 percent in April, approaching the 26.1 percent average reported by Macau’s major Cotai integrated resorts.
The recovery in Chinese tourism has also supported business growth. Jeju continues to benefit from its visa-free entry programme for Chinese visitors and the easing of China’s unofficial restrictions on travel to South Korea.
Casino drop at Jeju Dream Tower rose to KRW 2.77 trillion ($1.85 billion) in 2025, compared with KRW 1.73 trillion ( $1.15 billion) in 2024, marking a 60 percent increase.
Hana Securities said stronger cash flow, seasonal tourism demand and the launch of the rolling commission programme could also create opportunities for further debt refinancing in the second half of 2026.
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