South Korean Casino Chip Purchases May Stabilize After China Tax Deadline

South Korea’s foreigner-only casinos could experience an easing in the decline of customer chip purchases following China’s October 22 offshore trust tax deadline, according to KB Securities. This assessment comes amidst operators facing reduced spending per visitor, tighter Chinese capital controls, and a proposed increase in tourism fund contributions.

What Happened

KB Securities analyst Choi Yong-hyun projected that the decline in casino drop, which measures the amount customers exchange for gaming chips, is expected to end after China’s offshore trust tax deadline on October 22. This deadline signifies the conclusion of a 90-day transition period for declaring and paying personal income taxes related to trusts outside of China, as reported by the State Taxation Administration of China. Surcharges for late payments will apply after this date (iGaming Today).

The forecast from KB Securities considers the ongoing challenges faced by South Korean casino operators, including a decrease in spending per visitor and stricter Chinese capital controls. Despite an anticipated nearly 9% year-on-year increase in visitation for Lotte Tour Development in the third quarter, KB Securities projected a 5% drop in chip purchases per visitor, resulting in a 5% decline in revenue. This indicates a divergence between increased visitor numbers and reduced individual spending (iGaming Today).

The pressure on casino drop extends beyond Lotte Tour. Daol Investment & Securities noted that Paradise Co., Lotte Tour, and Grand Korea Leisure all recorded lower chip purchases in September compared to August’s peak season. Yuanta Securities analyst Lee Hwan-wook also linked Chinese capital controls, including offshore trust taxation, to weakened VIP betting sentiment, citing Macau’s September gross gaming revenue decline of 1.2% year-on-year to MOP18.1 billion ($2.24 billion) (iGaming Today).

Key Details

• KB Securities expects the decline in South Korean casino drop to end after China’s October 22 offshore trust tax deadline, according to analyst Choi Yong-hyun (iGaming Today).
• China’s October 22 deadline marks the end of a 90-day transition period for declaring and paying personal income taxes on offshore trusts (iGaming Today).
• Lotte Tour Development’s third-quarter casino visitation is estimated to increase by nearly 9% year-on-year, but chip purchases per visitor are expected to fall by 5%, leading to a 5% revenue decline (iGaming Today).
• South Korea is considering a proposal to increase the cap on foreigner-only casinos’ contributions to the Tourism Promotion and Development Fund from 10% to 15% of casino revenue, potentially adding over KRW150 billion ($113 million) to annual industry costs (iGaming Today).

Why It Matters

The potential stabilization of casino drop after China’s tax deadline offers a critical point of assessment for South Korea’s foreigner-only casino market. While visitor numbers may be increasing, the reduction in chip purchases per visitor and the ongoing impact of Chinese capital controls suggest a shift in player behavior and financial flows within the regulated gaming sector. The proposed increase in contributions to the Tourism Promotion and Development Fund also represents an additional cost burden for operators, potentially affecting their financial performance amidst tightening market conditions. This confluence of factors necessitates close monitoring by B2B operators, regulators, and industry analysts (iGaming Today).

What’s Next

Choi Yong-hyun of KB Securities anticipates that the scrutiny of wealthy individuals in China is not a temporary factor, indicating that the annual tax obligation for income from trusts funded by Chinese tax residents will continue. Regarding the Tourism Promotion and Development Fund, KB Securities cited reasons, including future competition from Osaka’s integrated resort in 2030, that support its expectation of a less severe contribution plan than initially proposed (iGaming Today).

Originally reported by iGaming Today·Published 21 Oct 2026, 22:01