The comments were made days after Japan’s parliament passed the long-awaited Integrated Resort (IR) Implementation Bill, a second of two pieces of legislation that will lead to the establishment of a domestic casino industry.
“Japan continues to be a core focus for us,” said Lawrence Ho Yau Lung, chairman and chief executive of Melco Resorts and Entertainment. He was speaking on a call with investment analysts, following the company’s second quarter results announcement.
“We expect development of the next generation of integrated resorts to soon commence in this incredibly exciting, yet currently under-penetrated, tourism destination,” he added.
The Melco Resorts CEO said the company was “devoting a huge amount of resources” to Japan. “We believe we are well placed in Japan with a strong local team actively working on the ground, engaging with the relevant stakeholders,” he added.
Key points in the IR Implementation Bill include an initial cap of three casino resorts nationwide; a 30% tax on casino gross gaming revenue (GGR); and an entry levy of US$54 for Japanese citizens and residents wishing to enter such venues.
Sheldon Adelson, chairman and chief executive of Las Vegas Sands Corp, said his company was “looking forward” to pursuing what would be “a unique opportunity” in Japan. “We hope to be able to bring our track record, expertise, and development vision together with our industry-leading financial strength to deliver a large-scale MICE-based integrated resort that would be uniquely tailored to the Japanese market.”
Robert Goldstein, Las Vegas Sands’ president and chief operating officer, also said that the company has had a presence in Japan “for over a decade”, and it was well aware of the “reference points” sought by the Japanese authorities to set up the country’s nascent casino industry.
Genting Singapore announced that it had set up an additional five new indirect wholly-owned subsidiaries in Japan, eyeing the eventual operation of integrated resorts in that country.
Timothy McNally, chairman of Cambodia casino operator NagaCorp, said that Japan is “undoubtedly an attractive market”.
A number of industry executives and investment analysts expect the first casino resorts to open for operation by 2025. Investment bank Morgan Stanley said in a note issued last week that Japan’s casino market size “could peg at a range of US$11 billion and U$20 billion gaming revenue”
Source: GMB / GGR Asia
