The South Korean casino operator Kangwon Land saw its year-on-year quarterly net profits drop by almost 47%, despite a rise in revenues.
The firm, which operates the High1 casino-resort in Gangwon Province, also saw operating profits fall by 7.2% year-on-year in the first quarter of 2026, the South Korean media outlet Digital Today reported.
Casino revenues were up, but rising costs and falling non-casino revenues have hurt growth.
In its preliminary report for the first quarter of the financial year, the firm also reported a 3.4% increase in revenue compared with Q1 2025.
The firm announced Q1 operating profits of 68.9 billion won ($46.6 million) and revenues of 378.9 billion won, or over $256 million.
Casino revenues in the first quarter hit the 360 billion won mark ($244 million). That represents a 4.5% increase on the same period last year.
The company said a recent increase in betting limits on its baccarat tables helped spur the rise. It also credited a range of service and system improvements as the main reasons for casino growth.
However, revenue from non-casino sales dropped by 2% to 48.6 billion won ($32.9 million).
Kangwon Land: Costs on the Rise
Rising overheads dented growth. Kangwon Land’s operating expenses in the first quarter amounted to 310 billion won (almost $210 million), a rise of 6.2% on the same period last year.
High1 is the only South Korean casino that admits domestic passport holders, granting it effective monopoly status in the country’s betting industry.
Scores of other casinos, located mostly in Seoul and Jeju Island, are only allowed to admit foreign passport holders.
Other South Korean operators have posted similarly disheartening figures in recent weeks, but investors have largely continued to back them in the stock market.
Kangwon Land’s share prices have risen by over 2.4% in the past five days.
Rival operator Grand Korea Leisure has experienced similar growth. The state-run firm, which operates the Seven Luck casino brand, recently announced it will host a traditional ceramics exhibition at its Gangnam, Seoul, casino.
The exhibition will feature work from master ceramists hailing from Yeoju, Gyeonggi Province, until June 30.
Yeoju is the unofficial capital of the traditional Korean ceramics industry, and is home to many of the country’s most famous craft workshops.
Late last month, a lawmaker revealed that, per Korea Gambling Control Commission estimates, the country’s illicit gambling networks are now worth around 96 trillion ($65 billion).
The National Police Agency also said the number of illegal youth gambling cases rose by 62% last year.
