INCHEON, South Korea -- Sega Sammy Holdings broke ground here Thursday on an integrated resort that will center on a casino, with opening slated for May 2017.
Surrounding the foreigners-only casino will be lodgings and a shopping mall. The resort, to be one of the largest in South Korea, will be jointly developed by Sega Sammy and South Korean casino company Paradise Group. Total cost is estimated at 140 billion yen ($1.17 billion).
Sales of roughly 60 billion yen and an operating profit topping 10 billion yen are targeted for the third year.
Sega Sammy has a 45% stake in the joint venture with Paradise, and is considering boosting its investment as it weighs expansion. Since Paradise will also pour more money into the project, the venture will remain an equity-method affiliate of Sega Sammy. The venture has already procured a 330,000-sq.-meter site, including space for expansion.
In May, Sega Sammy began using another casino in Incheon to train personnel in its business model and management practices. "We hope to have dozens of personnel trained by the integrated resort's opening in 2017," said Chief Executive Officer Hajime Satomi.