Lui sees “loads of potential”
Macau gaming operator Galaxy Entertainment Group has thrown its hat in the ring for a Japan casino license, reports the South China Morning Post.
The company has long expressed excitement about the upcoming jurisdiction; interest among global gaming operators has heightened since the Japanese parliament approved its integrated resort bill in December. Galaxy will join companies including the Las Vegas Sands Corp., Melco Resorts and Entertainment, Wynn Resorts, MGM Resorts International, Hard Rock and others in the bidding war.
They will vie for what brokerage Nomura expects to be only two to three licenses. Sands Chairman and CEO Sheldon Adelson has said he would invest as much as $10 million to get into the new market, calling it “the ultimate in business opportunities.” And Lawrence Ho, head of Melco Resorts & Entertainment, promised to spend “whatever it takes” to get one of the coveted licenses.
Galaxy Vice Chairman Francis Lui is equally enthusiastic. “We see loads of potential in the Japanese market and aim to win a casino license there in cooperation with Societe des Bains de Mer,” he said.
Brokerage CLSA estimates Japan’s casino industry will be worth more than US$10 billion in annual gaming revenue. Citigroup analysts say the market could be second only to Macau.
The bill passed in December approved the concept of integrated resorts with gaming; this year, Japanese officials are building the regulatory framework, which is due by December. It will specify the selected locations, choose the operators and determine the tax rate, among other details.
While the licenses could be granted later this year, it could take until 2021 or later for the resorts to open, missing the opportunity to participate in the 2020 Tokyo Olympics.
