Mohegan Sun eyes US$750mln in fees re Korea scheme

U.S. regional tribal casino operator Mohegan Tribal Gaming Authority, also known as Mohegan Sun, expects to receive around US$750 million in fee income from its involvement in a new casino resort at Incheon, near South Korea’s capital Seoul.

Mohegan Sun is one of the investors in the project (pictured in an artist’s rendering). The other consortium partner is South Korean chemicals manufacturer KCC Corp. The Incheon International Airport Corp, the operator of the air hub next door to the project, is also involved in the scheme.

According to slides of a Mohegan Sun presentation at the Bank of America Merrill Lynch 2016 Leveraged Finance Conference – which took place in Florida, in the United States, on Tuesday – the firm “will invest US$100 million (already raised) for 50-percent plus of the project’s equity, earn a development fee during construction (around US$45 million) and a 24-year management fee (3 percent of all revenues [plus] around US$30 million per year)”.

Mohegan Sun however cautioned that the definitive management and development agreements for the property had not yet been signed.

The presentation slides did not provide details about financing for the construction of the casino resort.

The firm said the project had “the potential to be transformational” for Mohegan Sun.