TLDR
- Paradise Co’s net income fell 24.4% year on year in the second quarter of 2026.
- The company still posted higher sales, up 11.8% compared with the same period last year.
- First half casino sales reached KRW477.62 billion, a 5.1% increase from last year.
- Hana Securities warned a proposed new casino tax cap could cut annual profit by 9%.
- The proposed regulation change has not been adopted and remains under discussion.
Paradise Co, a South Korean casino operator, reported lower profit for the second quarter of 2026. The company’s net income fell despite higher sales during the period.
Net income attributable to shareholders dropped 24.4% year on year. It reached just under KRW15.79 billion, or about US$11.2 million.
The result also fell compared with the previous quarter. Net income was down 4.1% from the first quarter of 2026.
The lower profit came even though sales grew during the same period. Paradise Co reported sales of almost KRW318.09 billion for the quarter.
Sales rose 11.8% compared with the same period last year. They also grew 8.2% compared with the previous quarter.
The company did not explain why profit fell while sales rose. No extra details were given in the filing about the drop in shareholder income.
Sales Growth Across the First Half
Paradise Co operates foreigner only casinos in South Korea. Its venues include Walkerhill Seoul, Paradise Busan, Jeju Grand, and Paradise City in Incheon.
Paradise City is run through a partnership with a unit of Sega Sammy Holdings, a Japanese company.
Data released in early July showed casino sales for the first half of the year reached KRW477.62 billion. That was a 5.1% increase from the same period last year.
The company’s casino drop for the first half reached KRW3.81 trillion. Casino drop refers to money exchanged for table gaming chips. This figure rose 8.1% from the same period a year earlier.
Possible Regulatory Changes
Paradise Co’s results are being viewed alongside proposed casino regulation changes in South Korea. Hana Securities, a brokerage firm, released a note on the possible impact of these changes.
The proposal would set a new cap of 15% on the share of yearly casino revenue paid to the country’s Tourism Promotion and Development Fund.
Hana Securities estimated that if this cap is introduced, Paradise Co’s yearly operating profit could fall by 9%. The proposal has not been adopted. It remains a suggested reform.
The latest results show a mixed picture for Paradise Co. Sales and casino activity rose during the quarter, but net income fell from both the previous quarter and the same quarter last year.
Paradise Co continues to run its casino venues in Seoul, Busan, Jeju Island, and Incheon. These locations serve only foreign visitors.
The company’s first half sales and drop figures both grew compared with last year. The second quarter results showed a gap between revenue growth and shareholder profit.
The proposed cap on casino revenue payments could affect future profit if it moves forward. Any change would depend on whether South Korean lawmakers approve the reform.
Paradise Co’s next quarterly report will show how earnings develop. The market will watch both casino activity and any regulatory changes to the Tourism Promotion and Development Fund.
