Mohegan's Inspire Korea resort is experiencing significant operational challenges, potentially leading to loan default concerns after its first year of operations.

The $1.6 billion Inspire Entertainment Resort, which opened in March at Incheon International Airport, reported disappointing financial results for fiscal year 2024. The property generated just $62.2 million in net revenue during Q4, with annual net revenues reaching only $163.3 million.

Key operational challenges include:

• Higher-than-expected operating costs
• Costly marketing campaigns across Asia
• Underperforming casino operations with low table hold
• Hotel occupancy at just 69%

The casino's gaming floor features:

• 150 live dealer table games
• 176-seat electronic table gaming stadium
• 373 slot machines

Despite Mohegan achieving record company-wide net revenues of $1.88 billion (up 13% year-over-year), Inspire's performance led to concerning financial metrics:

• Consolidated EBITDA shifted from +$34.5 million in FY23 to -$36.1 million in FY24
• Inspire's adjusted EBITDA showed a $49.5 million loss
• Gaming revenue significantly trails other Mohegan properties

For comparison, during the same period:

• Mohegan Sun (Connecticut): $589.2 million combined slots/table revenue
• Canadian properties: $210.9 million GGR
• Mohegan Pennsylvania: $196.6 million GGR
• Inspire Korea: $101.5 million combined gaming revenue

The company now faces potential default on its Korea Term Loan unless new lenders are secured, highlighting the severity of the operational challenges at the foreigner-only casino resort located 45 minutes outside downtown Seoul.

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