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In 2024, Mohegan opened the $1.6 billion Inspire casino resort in Incheon, South Korea, with high hopes for the first Native American run casino outside of the US. The Connecticut-based Mohegan tribe is one of the most recognizable names in US tribal casino gambling, and one of the giants of the sector alongside Florida's Seminole Tribe. However, that reputation was not enough to save Inspire. It was recently repossessed by Boston-based lender Bain Capital after a disastrous opening year in which it lost $150 million. So, what went wrong?
This article will look at the initial opening of Inspire, and what made Mohegan so confident to invest billions, as well the factors behind its poor performance that led to its recent repossession. It will also discuss what this failure means for the future of Mohegan, and potential knock on effects for similar integrated resort projects currently planned in Korea and Asia more widely.
High Hopes for the $1.6 Billion Resort and the First Tribal Casino Outside the US
Pitched as the first mover in what was aiming to be the Las Vegas of South Korea, Inspire resort was not only the first US tribal casino operation on foreign soil but also Mohegan's biggest ever investment outside of Connecticut.
Although its slots collection could not rival online casinos like jackpotcity for size or scale, the project was no small scale operation. The first phase of construction cost $1.6 billion, and was opened to much fanfare in March 2024.
Situated on an an island near Incheon International Airport, the secondary airport for South Korea's capital Seoul, Inspire initially opened with a huge 1,275 room hotel, 11 restaurants, a 15k seater concert and sports arena and an indoor waterpark. The expansive casino floor had several hundred slot machines and table games, as well as VIP rooms and poker.
Koreans Banned and International Visitors Weren't Enough to Turn Profit
Initially, things seemed to go well. The project bought much international attention and first quarter revenues for Mohegan in 2024 were strong. But, it didn't take long for the cracks to appear.
The main problem, one pointed out by many analysts before the launch, was the lack of local custom. Under strict Korean gambling laws, only foreigners were to be allowed into the casino part of the resort - which is one of the primary revenue drivers of these kind of operations.
Although international interest was high in the first few months, when that dropped off the lack of domestic traffic was a killer. The casino also apparently at first did fairly well at bringing in big spending Chinese gamblers by offering big comps and rewards.
But, with many US casino operators not used to the swings of running high limit baccarat (the preferred game of Chinese high rollers) the casino suffered from a low table game hold against gamblers that did visit.
After opening costs were also higher than expected, Inspire was written down as a $105 million loss on Mohegan's 2024 balance sheet.
Disaster for Mohegan Leads to Company Wide Changes
By March 2025, losses had mounted up to some $150 million and Mohegan was under pressure from its creditors and the South Korean government to reassess its plans.
Under the terms of the agreement, Mohegan could potentially still be on the hook for several billion more in promised investments in the area. That led to its decision to give up control of the casino resort to Bain Capital, in return for forgiving its $175 million loan agreement.
The tribal casino operator, having lost around a billion dollars from its holdings in total over the project, also offered to shop its Women's NBA team - The Connecticut Sun - to willing buyers. A $325 million sale to Bain Capital and Boston Celtics co-owner Stephen Pagliuca was in the works, including a plan to move the team from the Mohegan Sun Arena in Uncasville, CT, to Boston, Massachusetts.
However, the Connecticut state government is apparently blocking the move. It is considering investing itself to keep the team at Uncasville, as it is currently the only major league sports franchise in the state.
The entire Inspire debacle also lead to the resignation of Mohegan Gaming's CEO Ray Pineault, who had been in the role since 2021. His last day in the top job at the gambling operator will be December 28, 2025. The incoming management say they plan to return focus to US growth, particularly with Mohegan's online casino arm doing business.
What's Next for the Resort and the South Korean Model?
As for Inspire, Bain Capital is not yet entirely in full control of the resort. It has suggested it could look to sell up. It is currently on the market for an undisclosed fee, but Bain said a market evaluation was needed as part of its process to take control and that didn't necessarily mean a sale was imminent. But it said it could sell for the right offer.
Whoever ends up in charge will have to deal with a casino that lost $100 million in its opening year, and has absolutely zero prospect of any domestic traffic in the near future. The only casino in South Korea open to its own citizens is the remote Kangwon Land resort in the eastern Gangwon Province.
Inspire also has a roadmap for expansion that it had previously negotiated with the local Incheon government, which planned for another $4 billion or so. The future of that agreement under any new ownership is uncertain.