US tribal casino operator Mohegan Gaming & Entertainment received a previous one-year extension to complete construction of phase one of its planned integrated complex in South Korea.
In January, it became known for the first time that the company had asked the nation’s government to give it the green light to delay opening the property until 2023.
Mohegan originally planned to open the hotel, casino and entertainment complex in the second half of 2022, but obstacles of a different nature forced him to review the project schedule.
In 2020 reports emerged that the casino operator faced difficulties in raising capital to complete the mega-scheme and that it had disagreements with its Korean development partners, as they reportedly demanded that all outstanding funds be paid in full and that more funds must be secured before works can resume. of construction.
Mohegan also had to stop construction due to the coronavirus pandemic. The company’s CEO, Mario Kontomerkos, said in April 2020 that despite the drawbacks, they were on their way. to open the property in the first half of 2022. However, these drawbacks clearly hampered development progress and the company announced late last year that the launch would be delayed until early 2023.
Tourism authorities approve the postponement
The Korean Ministry of Culture, Sports and Tourism confirmed to Asian casino news outlet GGRAsia that it gave Mohegan an approval notice to delay the opening of its complex.
The casino operator said Wednesday that it also received approval to add a “Outdoor themed attraction zone” in your complex future. Andrew Billany, executive director of Mohegan’s Korean project, said in a statement that they are delighted to “hear the news of the expected approval of the business plan change by the government.”
The official also revealed that they plan to “normalize” the construction of the complex shortly and fully focus their efforts on securing the necessary financing for the mega plan.
According to its site, INSPIRE Entertainment Resort will span 1.7 million square meters of land about an hour from the Korean capital, Seoul. It will have a casino only for foreigners with 700 slot machines and 150 table games, a 5-star hotel with more than 1,200 luxury rooms, suites and villas, a 15,000-seat entertainment venue, a great meeting and conference venue, business facilities, restaurants and bars, and a host of entertainment offerings.
News about the granting of a term extension to Mohegan comes shortly after another integrated complex project also received a one-year extension of its deadline to open doors. The developers of that complex asked the Korean government a three-year extension.
The scheme was previously promoted by US casino operator Caesars Entertainment, Inc., but the company sold its stake to its local partners in February.
Source: Mohegan received a 1-year delay in opening Inspire Korea, GGRAsia, April 1, 2021