Kangwon Land, South Korea’s only casino open to local players, has reported a weaker start to 2026, with profits sliding and revenue growth showing signs of stagnation.
The company brought in KRW 378.9 billion ($280 million) between January and March, a rise of 3.4 per cent on the same period a year ago and 3.7 per cent ahead of the previous quarter. But beneath those headline figures, a combination of heightened regional tensions, rising domestic costs, and a squeeze on non-operating income weighed on the bottom line, painting a more complicated picture than the top-line numbers alone might suggest.
Much of the growth came from the casino floor itself, which continues to anchor the business and accounts for the lion’s share of what Kangwon Land earns. Gaming revenue stood at KRW 330.4 billion (around $244 million), up 4.3 per cent year-on-year, accounting for more than 87 per cent of total sales. By contrast, non-gaming operations, including hotels and leisure facilities, recorded a slight decline of 1.8 per cent to KRW 48.6 billion ($36 million).
GGR sees minor uptick
Gross gaming revenue (GGR), a key industry metric representing total wagers minus winnings paid out, rose by 4.5 per cent to KRW 360.0 billion ($266 million). The increase was underpinned by a larger drop in the total value of chips purchased by players, which climbed 3.2 per cent to KRW 1.5 trillion ($1.1 billion).
Visitor numbers remained relatively stable, jumping up 0.8 per cent to just over 625,000. However, international visitation showed stronger momentum, increasing by 4.1 per cent, albeit from a low base.
The company’s decision to raise betting limits in May 2025 appears to have contributed to improved gaming volumes. Maximum stakes at select VIP baccarat tables were increased significantly, while limits on certain mass-market table games were also raised, allowing for higher player spending.
Membership club surges
On the gaming floor, results were mixed. The membership club was the clear winner, with revenue up 27.6 per cent to KRW 62.1 billion ($46 million), driven by high-spending regulars. Slot machines also reported a jump, rising 2.4 per cent to KRW 138.5 billion ($102 million). Mass table gaming, however, edged down 0.6 per cent to KRW 159.4 billion ($118 million).
Outside the casino, the picture was patchier. Hotel revenue grew 4.4 per cent to KRW 23.7 billion, suggesting visitors are still coming, just spending less. The ski slopes slid 8.0 per cent, and Water World fared worst of all, with revenue falling 22.6 per cent to just KRW 1.0 billion ($0.7 million), raising questions about its future.
Operating profit fell 7.2 per cent year-on-year to KRW 68.9 billion ($51 million), with the margin narrowing to 18.2 per cent. Far more striking was the net profit figure, down 46.8 per cent to KRW 39.7 billion, or roughly $29 million, a fall that what modest revenue softness alone could account for, and one that will demand a clearer explanation from management in the months ahead.
Profits still weakening
The decline was driven in part by rising costs. Total expenses, including cost of goods sold and administrative spending, increased by 6.2 per cent to KRW 310.0 billion (about $229 million). Wage costs rose by 4.7 per cent , reflecting both regular increases and a KRW 2.4 billion (around $1.8 million) voluntary retirement payout during the quarter.
Adding to the pressure, taxes and levies linked to gaming revenue rose 3.7 per cent to KRW 93.2 billion ($69 million), while depreciation costs jumped 15.7 per cent to KRW 22.2 billion ($16 million). This was largely due to ongoing investment in infrastructure and safety upgrades.
Income from financial assets also dried up sharply, falling 81.9 per cent to just KRW 4.2 billion ($3.1 million), and the company booked an additional loss of KRW 19.2 billion ($14 million) in other earnings, piling further strain on the bottom line.
On the spending side, Kangwon Land has set aside KRW 145.4 billion ($107 million) in capital expenditure for the full year. The bulk of that will go towards upgrading its VIP gaming areas, building a second casino, and modernising internal systems.
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