The Covid-19 pandemic has hit hard the casino gambling and casino industry hard in South Korea. Therefore, Casino in Korea are not financially secure enough to resume sales tax payment. Thus, the Ministry of Culture, Sports and Tourism said that Korean Casinos Get a 12 Month Tax Reprieve.
According to the announcement, South Korean Casinos will be able to postpone sales tax payment for at least 12 months. In a normal year, casinos would have to pay their tax payment in June and September. However, an official said “if the damage is severe due to the decrease in sales”, the payment can be late.
Korean Casinos Get a 12 Month Tax Reprieve because of the Coronavirus
Thanks to the 12-month sales tax reprieve, Casino operators in Korea will have some breathing room for their gambling operations. This is because the gambling tax is usually every 6 months for 10% of their gambling sales revenues.
However, according to online casinos news, casinos sales are drastically down because of the coronavirus pandemic. This is in part due to casinos in Korea shutting down to help curb the spread of the virus. Casinos began to back in February of 2020, then reopening and then closing again. Several Casino forums thought that the last closure would be in December of 2020 but they were proven wrong.
In terms of numbers, the last time Casinos in Korea were fully operational was in 2019. During that year, sales tax from the 17 casinos was around $251 million. However, 2020 and 2021 was not so good to the casino industry with 59% in revenue losses for 2020. Furthermore, the loss in revenue, will drastically affect their future according to Paradise Casino.
Of course, this is not just because of the lack of tourists in South Korea. In South Korea, Kangwon land is the only one casino that is open for Koreans. However, it also lost a lot of money during the pandemic as it saw a 68.5% drop in revenue for 2020.
The 12-month tax reprieve is just that, a reprieve. This is because casino operators will still have to pay their taxes. The government is just hoping that it will give casinos enough time to become profitable without hurting the business itself.