Upping the ante
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Before Mohegan Inspire, other Korean casino resorts had already embraced the integrated resort (IR) model. Paradise City in Incheon, which opened in 2014, features a hotel, theme park, and meeting and convention facilities. Similarly, Jeju Shinhwa World on Jeju Island, operational since 2018, includes a Marriott hotel, theme park, and water park.
Mohegan Inspire, however, has elevated the IR standard. The $1.4 billion property boasts three hotel towers, a 15,000-seat multi-purpose arena, Korea’s largest ballroom, a glass-domed water park, and a sprawling outdoor entertainment park.
Yet, it faces significant competition from Japan’s upcoming MGM Osaka. Slated for a 2030 debut, MGM Osaka will be an $8.5 billion megaresort located on Yumeshima Island in Osaka Bay, the site of the 2024 World Expo. This ambitious project will include three opulent hotels, 730,000 square feet of conference and exhibition space, a retail district, entertainment venues, and a Japanese cultural museum across 700 acres. MGM president and CEO Bill Hornbuckle promises it will deliver “MGM’s ‘wow’ DNA from Las Vegas to Osaka.”
Korea already behind the 8-ball
In a recent Korea Times opinion piece, Osaka-based research scientist Yang Hyung-eun argues that Korea needs to enhance its integrated resort (IR) industry now, given the impending competition from Japan. He criticizes Korea for focusing more on regulation than promotion and calls for a strategic “white paper” to prepare for the challenge posed by MGM Osaka.
Yang emphasizes that Japan’s gaming industry, especially if more IR licenses are granted, could significantly threaten Korea’s market. He highlights the need for Korea to innovate its IR policies to ensure future growth and develop a clear vision for the industry.
Despite the competition, Mohegan Gaming’s Inspire, which began its soft opening in November 2023, is already making an impact. It contributed $35.9 million to a record $461.7 million in net revenue for the Mohegans in the fiscal year ending March 31. Analysts from CBRE predict that Inspire might achieve positive cash flow by early 2027.
Mohegan Gaming’s president and CEO, Ray Pineault, noted at Inspire’s grand opening last March that the resort, located near Incheon International Airport, aims to “set a new benchmark in hospitality and entertainment” and attract global visitors. The hope is that Inspire will continue to draw tourists to Korea even as Japan enters the IR market.