Mohegan Gaming's $1.6 Billion South Korean Casino In Jeopardy: Reports

MONTVILLE, CT — The future of Mohegan Gaming's expansion in South Korea is uncertain as the company is dealing with debt challenges and lower than expected revenues, according to reports.

Mohegan opened the $1.6-billion INSPIRE, dubbed the “Las Vegas of South Korea,” in 2023. But the gaming giant and resort developer controlled by the Mohegan Tribe reported that it lost $63.3 million in the fourth quarter of last year, The Hartford Business Journal reported.

The company is now facing loan defaults and deeper operational issues, Asia Gaming Brief reported. Underwhelming gaming revenue combined with high operating expenses for the resort's 15,000-seat arena, multi-purpose indoor water park, and large-scale food court are creating financial problems.

The INSPIRE property has yet to achieve profitability and a $275 million Korean Term Loan associated with the project is now in default.

However, on the plus side, the company reported a 12 percent increase in net revenues, which reached $497.7 million in the fourth quarter, according to World Casino News.

Mohegan Digital, which includes sports betting, generated $160.7 million last fiscal year, up 60 percent from the year before. Net revenue for Mohegan's domestic venues, including Mohegan Sun Casino in Uncasville, also saw growth of $34.6 million, or 2.6 percent, Hartford Business Journal reported.