Bain Capital Takes Over Inspire Casino Resort in South Korea

Posted on: February 17, 2025, 11:17h. 

Last updated on: February 17, 2025, 11:46h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Private equity firm now controls Korean casino hotel
  • MGE Korea was close to default on the venue

Private equity firm Bain Capital assumed control of the Inspire Korea casino hotel from Mohegan Gaming & Entertainment (MGE) — a move recently forecast by the tribal gaming operator.

Mohegan earnings Inspire South Korea
The Inspire Korea casino hotel. Bain Capital has taken control of the venue from an affiliate of Mohegan Gaming. (Image: Mohegan)

Inspire has been staring at the specter of a loan default, prompting the move by Bain, the principal lender to MGE Korea Ltd. That entity is the holding company for the Korean integrated resort. On MGE’s first-quarter earnings conference call last week, CFO Ari Glazer said that an agent for Inspire’s creditors, including Bain, took steps to accelerate the venue’s debt, paving the way for the Bain takeover. Glazer added that MGE is “evaluating the propriety of these actions and considering the appropriate responses.”

Bain said the takeover is aimed at shoring up Inspire’s finances and doesn’t pose a threat to employees or day-to-day operations at the venue.

Bain Capital has been a trusted partner and investor since the early development stages of the INSPIRE project, maintaining a strong and collaborative relationship with us,” said a representative of the property in a statement from Bain supplied to Casino.org. “We believe that this transition will further solidify our partnership and accelerate INSPIRE’s sustainable growth.”

Boston-based Bain was co-founded by former Massachusetts Gov. Mitt Romney who also served as a US Senator from Utah and was the Republican presidential nominee in 2012.

Mohegan Could Be Better Off Without Inspire

Located near Incheon International Airport on Yeongjong Island, Inspire opened 11 months ago, but struggled over that time while rival venues thrived.

MGE Korea Ltd. was structured as a separate entity apart from parent MGE, meaning that if the former defaulted, it wouldn’t have been a threat to MGE’s US operations. Still, some analysts noted the missteps in South Korea weighed on MGE’s credit rating and debt prices.

For its part, Bain is steeped in experience in South Korea, including prior investments in Korean firms across multiple sectors.

“Bain Capital has a long-standing presence in Korea, with a track record of successful investments across consumer goods, technology, healthcare, and financial services,” according to the statement. “The firm has played a key role in helping Korean companies expand globally, including its investments in Carver Korea, Hugel, and Classys. Beyond Korea.”

Bain Has Gaming Experience, Too

There’s a deep, long-running history between the casino gaming and private equity industries, and Bain has been a part of some of those chapters.

Bain Capital has leveraged its extensive investment experience in the gaming sector to drive the growth and innovation of various companies, including Gamblit Gaming, Scientific Games, Game Logic, Thumbplay, Zynga, and Twin River Casino,” it added in the press release.

The investment house also highlighted various investments in nongaming luxury results around the world, but didn’gt mention its long-term plans in South Korea, including for how long it intends to run Inspire or if it will bring a gaming partner to take over those duties.