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NEWS 2 December 2016

Mohegan Sun aims for $750m in fees from Incheon casino

By Alex Hammond
Tribal casino operator Mohegan Sun Tribal Gaming Authority (MTGA) is targeting approximately $750m in fees for its partnership in the Incheon casino project, according to reports.

MTGA is a key partner in the development of the Seoul casino resorts, which is expected to the biggest in the world once completed.

Earlier this week, at the Bank of America Merrill Lynch 2016 Leveraged Finance Conference, MGTA confirmed that it will invest $100m for 50% of the projects equity, and will receive a development fee during construction of approximately $45m, followed by a 24–year management contract worth approximately $30m per year plus 3% of all revenues.

MTGA did not reveal how the construction of the resort would be financed.

The other partners in the casino resort development are South Korean chemicals manufacturer KCC Corp and the Incheon International Airport Corp. Incheon International is located next to the site of the casino resort, from which there will be immediate access provided to the casino.

The Tribal Gaming operator also gave some indication as to where revenue at the new resort are expected to come from, stating that only 20% of revenue will come from VIPs. It also stressed the need for balance between gaming and non-gaming revenue.

The definitive management and development agreements for the property have yet to be signed, but MTGA has confirmed that project has the potential to be “transformational” for the Tribal operator.

RELATED TAGS: Land-Based | Casino
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