UK
The creditor that has taken control of the $1.6 billion hotel complex has put Inspire Entertainment Resort, South Korea's largest casino catering solely to foreigners, up for sale.
The Korea Times states that Bain Capital, the private equity powerhouse from Boston, is looking for bids for the casino resort situated at Incheon International Airport. In February, Bain acquired the property conceptualized, built, and launched by MGE Korea Limited, the Asian branch of the Mohegan Tribe in Connecticut, following its default on a $275 million loan that Bain provided for the resort's development.
In January, Mohegan indicated it might default on its Korea Term Loan because of unexpected operational expenses, disappointing hotel reservations, and lackluster earnings from its 150 live-dealer games. The casino also features 373 slot machines and a stadium for electronic table games with 176 seats.
Major Gamble Failures
Inspire represented Mohegan's biggest financial investment outside of Connecticut to date. It was also the largest failure of the company.
Inspire began operations in March 2024. The initial phase featured, alongside the casino, a five-star hotel comprising 1,275 guest rooms, 11 dining establishments, five bars, the 15,000-seat Inspire Arena, a retail complex, an indoor water park, and an engaging indoor street surrounded by a high-definition LED display.
Mohegan's agreement with the Ministry of Culture, Sports, and Tourism involved $3.4 billion for extra construction stages, including an indoor pathway linking the casino hotel to the airport terminal. This would make Inspire the sole casino globally linked to an international airport.
Additional development stages were intended to feature a Paramount Studios theme park and an outdoor venue for entertainment and exhibitions. Now that Bain is managing Inspire, it remains uncertain if the South Korean government, which aimed to leverage Inspire for tourism growth and establish Incheon as a worldwide center for entertainment and business, will reduce its demands for additional investment.
“The license was granted to Inspire, so regardless of any changes in share ownership, Inspire is still obligated to meet certain conditions — such as making specific investments and constructing required facilities. We will continue to monitor how those terms are being upheld,” a ministry official told The Korea Times.
Mohegan reported a loss of 156.4 billion won (US$112.3 million) from operating Inspire in 2024. As Koreans are prohibited from gambling at Inspire — South Korea restricts casino gaming for its citizens and residents to Kangwon Land, a distant resort located on an old coal mine — Bain’s acquisition of Inspire raises concerns about the profitability of a foreigners-only integrated resort casino depending exclusively on international visitors.
Mohegan Requires Funds
Mohegan's significant risk in South Korea has put financial pressure on the tribally owned business. Last week, Casino.org revealed that Mohegan was looking to sell its long-held WNBA team, the Connecticut Sun.
In 2003, Mohegan brought the women's professional basketball team to Connecticut after paying a $10 million fee to the WNBA. The Sun is valued at $80 million by the sports business media platform Sportico.
Mohegan aims to shift its emphasis back to gaming and hospitality operations in the US. The firm anticipates that its upcoming venture will be a casino resort on Manhattan's East Side in collaboration with the real estate company Soloviev.
