for early access to the latest igaming videos!
and get the latest igaming news first!
Kangwon Land Inc, South Korea’s lone casino open to locals, saw its net profit plunge 41.2 percent year-on-year and 41.6 percent quarter-on-quarter to KRW66.0 billion in the fourth quarter ended December 31, 2025. Higher SG&A expenses and no repeat of a one-off gain from the prior year’s same period dragged results, even as gross gaming revenue ticked up 7.2 percent yearly, though slightly softer than Q3, to KRW357.3 billion. The increase owed to much higher betting limits on select tables in May 2025, helping offset seasonal dips as winter pushed guests toward skiing over golf and parks.
Segment Breakdown Shows Mixed Bag
Mass table GGR rose 8.6 percent year-on-year but slipped 3.6 percent from Q3 to KRW161.0 billion. The VIP membership club grew 7.2 percent annually and held nearly flat quarter-on-quarter at KRW58.0 billion. Slot revenue increased by 5.6 percent compared to last year to KRW138.3 billion; however, slot revenue declined by 3.1 percent from Q3. The amount of money wagered decreased by 13.0 percent at machines and tables, but the amount of money bet was up 13.0 percent to KRW1.55 trillion from last year; nonetheless, the profit margin fell to 8.1 percent from 12.4 percent and 18.9 percent in Q4 2024, and Q3, respectively. Non-gaming business decreased by 4.2 percent to KRW39.8 billion due to the appeal of ski resorts to visitors due to cold weather instead of amusement parks and golf courses.
Full-Year Sales Edge Higher
In 2025, overall sales increased by 3.5 percent to KRW1.48 trillion, gaming business up 5.0 percent to KRW1.31 trillion, and non-gaming business decreased by 7.0 percent to KRW169.0 billion. The fourth quarter was a hold-back quarter following the better quarters, with spending cutting deeper and no lucky breaks to cushion the blow. Steady GGR held ground thanks to table tweaks, but margins squeezed amid spending rises. Kangwon, tucked in the mountains as a mine reclamation project, juggles local monopoly with tourism pivot.
Non-Gaming Shift in Focus
Kangwon recently detailed its “alternative stay resort” blueprint to double non-gaming revenue share from 20 percent to 40 percent yearly, luring longer visits with incentives. Part of a KRW3 trillion, or $1.9 billion, overhaul boosting casino space and amenities, the strategy counters gaming reliance amid seasonal swings. Q4’s ski shift previews that play, though sales dipped as golf faded. Full-year non-gaming pullback highlights execution challenges, even as gaming steadied.
Margins Under Pressure
SG&A hikes eroded gains, dropping Q4 margins sharply from prior periods. Drop’s 13 percent rise showed traffic strength, but conversion lagged without one-offs. VIP and mass both edged ahead yearly, slots too, yet sequential softness signaled winter slowdowns. 2025 sales growth masked profit strains, setting the stage for the transformation push to diversify and extend stays. The local appeal of Kangwon remains, but expenses and seasons are putting its strength to the test with its ambitious renovation plans.
Source: Inside Asian Gaming (IAG)
