A decisive victory at the polls for Japanese Prime Minister Shinzo Abe’s LDP Party and coalition partner the Komeito bodes well for Abe’s integrated resort program. The prime minister’s coalition won 71 of 124 open seats in the House of Councillors to win a clear majority in the 245-member upper legislative chamber.
That means the path is clear for lawmakers to complete its “basic policy” on casinos, which will include details on where the first three properties will be located. The government has already ratified two pieces of enabling legislation needed to launch the new industry.
In a recent report, Global Market Advisors said the Japanese government had delayed the formation of a casino management commission “because of the elections that have been planned for the upper house of the Diet,” or parliament..
“While many reports have stated that this will delay the process up to a year, it will likely only be a small delay in the overall process to establish gaming regulations, which would create the commission and the subsequent regulations that will need to be made,” GMA added.
Though Osaka, which hopes to nab one of the initial licenses, wants to open its presumed IR by 2025, in time for the World Expo, GMA said licenses “would have to be awarded within the next 12 months to have a chance at opening a complete integrated resort that is ready to go by 2025.”
Osaka authorities have publicly named five of the seven entities that are participating in its request-for-concept phase that began in late April: Genting Singapore; the Las Vegas Sands Corp.; Melco Resorts and Entertainment; MGM Resorts International; and Wynn Resorts.
AGB reported that the Yokohama Chamber of Commerce & Industry has publicly urged Mayor Fumiko Hayashi to come out in favor of an IR, which Chairman Takashi Ueno called “a basic stance on behalf of the future development of Yokohama.”
“If the city government doesn’t move soon, it will be difficult to take action,” added Vice-Chairman Morihiko Kawamoto. “We need to make our declaration of a bid now while the time is still ripe.”
Hayashi has said she would not make a final decision about pursuing an IR until the central government issued more detailed regulations for the industry.
While the Yokohama Chamber of Commerce & Industry leadership is strongly in favor of an IR bid, other business leaders and a strong majority of the public oppose such an initiative.
