Crown Resorts’ Executive Vice President Todd Nesbit recently met with Ichiro Matsui, the governor of Osaka, to convey the company’s interest in developing a casino in the city when Japan legalizes them.
Australia-based Crown plans to pursue a license through its Macau-based partner Melco Crown Entertainment, of which it owns 33 percent, and the Sydney Morning Herald reports that Nesbit and Matsui, a casino supporter, discussed the competitive advantages of Osaka, including the proximity of its international airport and its cheaper land costs compared with Tokyo and other major cities.
Nesbit said Melco Crown representatives also have been meeting with Osaka officials and business leaders to discuss the possibilities. The company is reported to be prepared to commit US$5 billion to the market.
The expectation is that casinos will be legalized in a special session of the National Diet this fall, and that at least three licenses will be authorized initially, one each in Tokyo and Osaka and one in a regional tourist destination. Analysts predict the market could be worth up to US$15 billion in annual gaming revenues, and most of the world’s leading global operators have visited the country and/or expressed in interest in bidding.
According to Japanese media reports, there are at least six prefectural authorities vying to host casinos: Osaka, Tokyo, Hokkaido, Nagasaki, Miyazaki and Okinawa.
In a recent online survey conducted by Japanese advertising and public relations agency Hakuhodo, Osaka was considered by respondents as only the third most attractive location for a gaming resort. But Hakuhodo forecasts a casino in the city could attract around 13 million domestic visitors a year and generate sales of 1.9 trillion yen (US$18.5 billion).
