According to a report from the Reuters news service, major firms including MGM Resorts International and Hard Rock Cafe International Incorporated are jostling for pole position while a team of around 36 legislators gets down to drafting new regulations designed to select operators and regulate the coming Japanese industry.
The political sources predict Japan may initially approve two to three casinos, with locations and operators chosen by 2019 and the casinos open by 2023. Just two casinos could bring in more than $10 billion in annual gaming revenue, forecasts brokerage CLSA, rising to $25 billion if more casinos are approved. Other analysts say Japan's market could be worth as much as $40 billion a year.
With a wealthy population and strong tourist appeal, Japan's opening up to casinos is welcome news for global operators impacted by China's crackdown on corruption and currency outflows that has hit revenues in Macau, the world's biggest gambling hub.
Las Vegas Sands, Genting Singapore Plc and MGM lead the chase in Japan, CLSA says, given the strong balance sheets and proven track record required there. Keen to avoid losing out - as it did to Sands and Genting in Singapore a decade ago - MGM will this year boost staff and resources, it told Reuters without elaborating.
News service reported that Tokyo could already be out of the running due to its hosting of the 2020 Summer Olympics and height restrictions on new high-rise developments while cities such as Osaka and Yokohama are seen as strong contenders. It explained that international operators will most likely seek minority stakes in ventures majority-owned by Japanese partners, who will bring political connections and local expertise.
Japan attracted a record 24 million tourists last year, and sees casinos as a catalyst for more visitors and economic growth after the 2020 Tokyo Olympics. "The opportunity that Japan represents is one of the most significant anywhere in the world," said Alan Feldman, MGM executive vice president of global government and industry affairs.
Source: GMB / Reuter
