[Edaily Kang Gyeong-rok Travel Reporter] Monthly revenue at the Jeju Dream Tower Casino, operated by Lotte Tour Development, has surpassed 60 billion won for the first time. Although the number of visitors remained flat, this result stems from an increase in the amount wagered per person (drop) and a sharp rise in the “hold rate”—which indicates the casino’s profit margin—driven by the attraction of high-stakes bettors. While securities analysts and market experts positively evaluate the success of the strategy to attract “rolling customers” (high-stakes, frequent bettors), they point out that since a significant portion of this sharp rise in performance relies on a rise in the hold rate—which is largely a matter of luck—the sustainability of operating profit must be carefully assessed.

◇‘Raising VIP Betting Limits’ Proved Effective
According to the Financial Supervisory Service’s electronic disclosure system on the 6th, Lotte Tour Development’s net casino revenue for October reached 62.526 billion won, surging 115.4% from the previous month and 24.1% year-over-year. By business segment, table game revenue surged 134.6% month-over-month to 60.352 billion won, while revenue from machine games, such as slot machines, fell 34.3% to 2.174 billion won.
The driving force behind this growth was a sharp increase in “drop,” which refers to the amount spent on chips. In October, table drop totaled 327.416 billion won, up 37.7% from the previous month (237.769 billion won) and 27.5% year-over-year, marking the first time it has surpassed the 300 billion won threshold on a monthly basis.
What is noteworthy is that this growth was driven not by an increase in the number of customers, but by the “average bet size per customer.” While the number of casino visitors in October was 66,254—virtually unchanged from the previous month (66,393; -0.2%)—the average table drop per visitor jumped by 38%, from 3.58 million won to 4.94 million won.
This is interpreted as the result of a successful strategy to improve the business model by focusing on high-stakes bettors (VIPs). Kim Min-young, an analyst at Meritz Securities, commented, “The results of raising the maximum betting limit to 100 million won for standard tables and 150 million won for premium tables, as well as resuming the operation of dedicated spaces for rolling customers, are now becoming visible in the expansion of drop revenue.”
◇72% of the Sales Surge Is Due to a ‘Hold Rate Illusion’
However, experts caution that the October revenue surge relies heavily on a volatile “rise in the hold rate” rather than a structural increase in the number of visitors. The table hold rate, which was only 10.8% in September, jumped 7.6 percentage points to 18.4% in October.
Breaking down the approximately 34.6 billion won increase in table revenue in October, the pure revenue effect attributable solely to an increase in drop volume—assuming the September hold rate (10.8%) had been maintained—amounts to only about 9.7 billion won. The remaining approximately 24.9 billion won (about 72% of the increase) is attributable to the “hold rate effect,” resulting from a temporary rise in the casino’s win rate. Given that the hold rate fluctuates based on game outcomes, viewing October’s revenue growth rate—which exceeded 100%—as a sustainable growth rate for the future could be misleading.
Verifying actual profitability amid differences in accounting standards also remains a challenge. The disclosed October net revenue (62.5 billion won) is calculated in accordance with International Financial Reporting Standards (IFRS), excluding deductions such as agent commissions. This results in a discrepancy of 20.736 billion won compared to the total revenue of 83.261 billion won reported by the Casino Association. In a VIP-centric business model that involves commission payments and rolling marketing costs, it is essential to carefully examine the operating profit margin relative to total revenue.
The securities industry is also wary of premature optimism. Lee Ki-hoon, an analyst at Hana Securities, stated in a recent report, “Given the volatility in casino hold rates and the weak stock performance of the global casino sector, it is necessary to carefully adjust earnings estimates and target prices,” and lowered the target price from 21,000 won to 16,000 won.
◇ Expansion of International Flights a Positive… “Must Solidify Base of Returning VIPs”
A positive development is the improving infrastructure environment. According to the Korea Airports Corporation, the winter flight schedule for international flights at Jeju Airport this year is set at 486 flights per week—a 39.3% increase compared to the same period last year and a 9% increase compared to the previous summer—significantly enhancing accessibility for foreign visitors.
However, further confirmation is needed regarding synergies with the hotel sector and improvements in consolidated performance. In October, the Grand Hyatt Jeju Hotel’s standalone revenue was 15.542 billion won, up 9.2% from the previous month; however, consolidated hotel revenue—after deducting internal transactions such as complimentary rooms provided to casino patrons—was 6.714 billion won, down 9.2% year-over-year. Whether the revitalization of the casino fully translates into improved profitability for the resort as a whole must be demonstrated through the consolidated financial statements for the fourth quarter.
A casino analyst, who requested anonymity, stated, “The October results both validated the strategy to attract high-roller customers and demonstrated the potential for performance distortions caused by fluctuations in the hold rate,” adding, “Rather than reacting to short-term revenue fluctuations, the key to a revaluation of the company’s value will lie in how firmly it can establish a stable base of VIP drop revenue, building on the expanding international flight infrastructure.”