MGM Exec: Japan to Resume IR License Bidding
The Japan Casino Regulatory Commission, which awarded only one of three available casino resort licenses in 2023, will reportedly reopen the application process in the coming year.
Speaking April 7 at G2E Asia, MGM President of Global Development Ed Bowers said the central government is “actively working” on a second round of bidding for integrated resorts with gaming, with a goal of licensing two more by December 2027.
Japan first approved legal casino complexes in 2018. At the time, analysts projected the market could generate stratospheric revenues, up to $40 billion yearly. But Covid-19 sent potential investors into survival mode, and interest in the market withered. In 2023, the government awarded just one of three licenses to MGM Resorts and its Japanese partner, Orix Corp.
Analyst Howard Jay Klein on the financial news website Seeking Alpha called the $8.9 billion MGM Osaka the “first true mega ‘city within a city’ property … an answer to the growing incursion of online betting.”
The sprawling property on 120 acres will have three hotels; meeting and convention space; a shopping mall and 3,000-seat theater; and more than 14 restaurants. The casino will comprise just 3 percent of gross area, but in a complex this size, that’s big enough for 6,400 slot machines and 470 table games. MGM will retain its lock on the market for at least five years after opening, Klein observed. “Osaka’s first mover position will be pure gold.”
Melco Posts ‘Solid Results’ for Q1
On an earnings call with analysts on May 8, Melco Resorts & Entertainment Chairman and CEO Lawrence Ho touted “a solid set of results for the first quarter that demonstrates our strengths and our growth prospects.”
Melco operates integrated resorts in Macau, Manila and Cyprus, and is preparing to open its Sri Lanka casino later this year.
Melco’s market share in Macau grew from 14.7 percent in Q4 2024 to 15.7 percent in Q1 2025, “and remained stable at this level in April,” Ho said. Property EBITDA grew 32 percent quarter-over-quarter. Mass drop grew throughout the quarter, reaching record highs at both City of Dreams and Studio City. That momentum continued into April and Golden Week, the Chinese national holiday celebrated May 1-5.
“We’re firing on all cylinders in Macau,” said Ho.
City of Dreams Manila felt the impact of increased competition in that market, he continued. Melco plans to offload the IR, located in the Philippines Entertainment City casino zone. The move would free up capital for a Thailand bid. “Potential buyers are signing NDAs,” Ho said. “We’ll come back when there’s something to announce.”
Meanwhile, City of Dreams Mediterranean in Cyprus “achieved 10 percent year-over-year growth in property EBITDA” for Q1, despite the impact on tourism from the Ukraine and Israel-Hamas conflicts. “We’re optimistic about the results that Cyprus can deliver over the rest of the year,” said Ho.
Last but not least, preparations continue for the opening of the casino at City of Dreams Sri Lanka. Doors are expected to open in the third quarter.
PAGCOR Sees 11 Percent Bump in First Quarter
The Philippine Amusement and Gaming Corp. posted revenue of PHP28 billion ($502.9 million) for the first quarter of 2025, up 11.2 percent year on year. That exceeds the government target of PH26.88 billion by 4.45 percent.
Fifty-six percent of gaming revenue came from electronic games and e-bingo, for a total of PHP14.32 billion. Licensed casinos and PAGCOR-operated gaming halls accounted for 44 percent, for a collective PHP11.2 billion. Net income came to PHP4.22 billion, up 23 percent year on year.
“This solid performance reflects PAGCOR’s commitment to responsible governance and fiscal discipline,” said Alejandro H. Tengco, the regulator’s chairman and CEO.
Macau Golden Week Exceeds Expectations
Macau enjoyed a tourism boom during the recent Golden Week national holiday, celebrated May 1-5. According to the Macau Daily Times, the Chinese special administrative region welcomed more than 850,000 visitors for the period, far surpassing the government estimate of 630,000 to 700,000.
Arrivals surged 40.5 percent from the 2024 total of nearly 605,000. Friday, May 2, saw the highest single-day total since the Covid-19 pandemic, with almost 222,000 arrivals, according to the Macao Government Tourism Office. Mainland Chinese tourists accounted for 678,500 arrivals, up nearly 40 percent year on year.
Historically, Macau casinos post the highest revenue in May, August and October. During those months, millions of mainland tourists flood the SAR, the only place in China where casino gambling is legal.
Bank to Sell Land Under Failed Philippines Resort Project
Three times, Dennis Uy’s PH Resorts Group has tried and failed to find an investor for its Emerald Bay casino resort in the Philippines. It was in talks with a fourth would-be angel, construction and engineering firm EEI Corp., when China Banking Corp. announced it will sell the property in Cebu.
According to the Philippine Inquirer, Chinabank Chairman Hans Sy said “a couple of interested parties” could purchase the 30-acre beachfront tract. He did not identify potential buyers.
Emerald Bay, once called “a luxury leisure experience unlike any other,” was to include a five-star hotel, four pools, 18 dining outlets, retail spaces, conference and exhibition facilities, and a large-scale gaming floor with more than 700 electronic gaming machines and over 140 tables.
In December, Uy and EEI signed an MOU to complete the IR, which broke ground in 2017.
“We gave Dennis a chance to redeem,” said Sy. “Of course, they asked for an extension and we already gave them more than a year. It’s already in our name. … We’re not renewing anymore.”
