[Click e-Stock] "Lotte Tour Development Sees Larger VIP Bets... Focus on Drop Growth"

Expectations for improved performance at Lotte Tour Development’s casino business are growing as VIP customers are increasing the scale of their bets. While net revenue has been sluggish due to hold rate volatility, both casino drop and per capita drop are rising simultaneously, indicating that the company’s strategy to attract rolling customers is producing tangible results.

According to Meritz Securities on September 21, Lotte Tour Development’s casino welcomed 59,000 visitors in August 2026, marking a 3.5% increase year-on-year. Over the same period, casino drop reached KRW 336.4 billion, up 19.7% from the previous year and 27.6% from the previous month. Per capita drop also jumped 35.6% in just a month, rising from KRW 4.2 million to KRW 5.7 million.

Minyoung Kim, researcher at Meritz Securities, stated, “A higher proportion of high-value bets can increase monthly hold rate volatility,” while emphasizing, “It is notable that both drop and per capita drop have increased at the same time, beyond just net revenues.”

Net casino revenues were KRW 46.2 billion, up 7.5% year-on-year, but down 10.4% compared to the previous month. The contribution of VIP customer betting has risen, resulting in a decline in the casino hold rate to 14.8%. The hold rate refers to the percentage of customer bets that the casino actually retains as sales.

Lotte Tour Development is also reinforcing its operational strategies aimed at high-roller clients. The maximum bet limit for regular tables has been adjusted to KRW 100 million, while premium tables now allow up to KRW 150 million per bet. The company has also resumed operation of rolling-exclusive areas. Meritz Securities assessed that these strategies are directly translating into increased drop figures.

The proportion of hotel rooms used by casino customers has also expanded. In the second quarter of this year, the proportion of hotel rooms occupied by casino customers reached 51.8%. Meritz Securities pointed out that there is still ample room to accommodate additional customers and that, as rolling customers continue to make repeat visits, further growth in drop volume is possible.

The increase in inbound foreign tourists is also creating a favorable environment for the casino business. In July, 2,093,000 foreign visitors entered Korea, setting a record high with a 20.8% increase year-on-year. Cumulative foreign arrivals to Jeju from January to July this year reached 1,468,000, up 15.1% from the previous year.

Researcher Kim commented, “Considering the expansion of international flights to Jeju, the Chuseok holiday in September, and China’s National Day Golden Week in October, the outlook for new casino customer inflows remains positive.” However, she noted that since visitor schedules before and after the holidays may be spread out or timing may differ, monitoring the visitor and drop trends in September and October is necessary.

Accordingly, Meritz Securities projects Lotte Tour Development will deliver its highest-ever quarterly results in the third quarter of this year. Annual revenue is estimated at KRW 755.1 billion and operating profit at KRW 184.6 billion, up 15.6% and 28.8%, respectively, from the previous year. The third quarter revenue and operating profit forecasts stand at KRW 206.5 billion and KRW 54.9 billion, respectively.

Researcher Kim added, “Although the share price was adjusted due to concerns over costs related to the Tourism Promotion and Development Fund, the uptrend in key operating indicators continues, so record-breaking results are also expected in the third quarter.”

This content was produced with the assistance of AI translation services.