Mohegan’s ambitious Inspire Resort near Incheon Airport has hit a major setback. Bain Capital, now in control after a loan default, is selling the $3.4B casino complex amid financial woes and unmet projections.
The creditor who has taken possession of the $1.6 billion hotel complex has put Inspire Entertainment Resort, South Korea’s largest foreign-only casino, up for sale.
According to the Korea Times, Boston-based private equity firm Bain Capital is soliciting proposals for the casino resort near Incheon International Airport. Bain acquired ownership of the facility envisioned, built, and inaugurated by MGE Korea Limited, the Asian affiliate of the Mohegan Tribe in Connecticut, in February after it failed to repay a $275 million loan provided by Bain to fund the resort.
Mohegan warned in January that it risked default on its Korea Term Loan because to higher-than-expected operational costs, weak hotel reservations, and low table game earnings from its 150 live-dealer games. The casino also features 373 slot machines and a 176-seat electronic table game arena.
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Mohegan’s biggest investment outside of Connecticut was Inspire. It was also the biggest failure of the business.
March 2024 saw the opening of Inspire. The casino and a five-star hotel with 1,275 rooms, 11 dining options, five bars, the 15K-seat Inspire Arena, a shopping centre, an indoor water park, and an immersive indoor street covered in high-resolution LED wrap were all part of the first phase.
An interior walkway connecting the casino hotel to the airport terminal was one of the $3.4 billion in extra building phases included in Mohegan’s development deal with the Ministry of Culture, Sports, and Tourism. Inspire would become the first casino with an international airport connection in the world.
A theme park at Paramount Studios and an outdoor entertainment and exposition centre were planned as part of later development stages. It’s uncertain if the South Korean government, which intended to utilize Inspire to boost tourism and establish Incheon as a major international centre for business and entertainment, will be prepared to lower its expectations for further investment now that Bain is in charge of the company.
Since Inspire was given the license, it is still subject to certain requirements, including making certain investments and building the necessary infrastructure, even if the ownership of shares changes. We’ll keep an eye on how those conditions are being followed,” a ministry representative told The Korea Times.
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