Mohegan's Inspire Korea resort is showing concerning financial performance in its first year of operations, potentially risking loan default. The $1.6 billion integrated resort casino at Incheon International Airport has significantly underperformed expectations since its March opening.

Fourth-quarter net revenue reached only $62.2 million, with annual revenue at $163.3 million. The property's gaming performance has been particularly weak, with table games generating $94.7 million and slots just $6.8 million in fiscal year 2024—far below Mohegan's other properties.

Key Financial Challenges:

• Higher-than-expected operating costs
• Expensive marketing campaigns across Asia
• Low table hold percentages
• Hotel occupancy at only 69%
• Potential default on Korea Term Loan

While Mohegan achieved record company-wide revenue of $1.88 billion (up 13% year-over-year), Inspire's poor performance led to a consolidated EBITDA loss of $36.1 million, compared to a $34.5 million profit in FY23. Inspire itself posted an adjusted EBITDA loss of $49.5 million.

The resort's location, 45 minutes outside downtown Seoul, may be impacting its appeal to foreign visitors. As a foreigner-only casino, Inspire cannot serve South Korean nationals, who can only legally gamble at Kangwon Land.

The facility features:

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

Unless Mohegan secures new lenders in South Korea, the company faces significant risk of defaulting on its Korean Term Loan, raising serious concerns about the project's future viability.

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