No interest in regional destination
Genting Singapore, considered a frontrunner in the race for one of Japan’s first three integrated resort licenses, is interested only in major urban markets such as Osaka or Yokohama for the development. Tokyo has also been identified by many analysts as one of the top three destinations.
In June, brokerage Sanford C. Bernstein suggested Genting had “an edge” over a broad field of potential bidders that includes Melco Resorts & Entertainment, MGM Resorts International, Caesars Entertainment, Galaxy Entertainment Group, Wynn Resorts and the Las Vegas Sands Corp. Bernstein recently said Genting is “confident that Osaka would be selected as one of the final three cities, and that Yokohama has high potential as well. Genting was clear that they do not wish to pursue an opportunity in Hokkaido or other small regional locations and instead is focused on Osaka, Yokohama and other major metropolitan areas.”
Though Yokohama Mayor Fumiko Hayashi insists that the city is not yet sold on an IR, Asia Gaming Brief reports that a total of 22 companies or groups have registered to participate in an RFI there in anticipation of such a development there. The companies will deliver their reports and materials in September.
Meanwhile, Osaka is also a favorite of Jim Murren, chairman and CEO of MGM Resorts International. Murren recently told the Sankei Shinbun that Osaka is perfect because of its transportation infrastructure. “Kansai International Airport and Kobe Airport are nearby, and the Shinkansen and local railway network is developing.” He said MGM may invest up to US$10 billion in an integrated resort in Japan, a figure also used by Melco’s Lawrence Ho and the Sands Corp.’s Sheldon Adelson.
AGB reported that Wynn Resorts President and CEO Matthew Maddox has reaffirmed his company’s commitment to winning an IR license in Japan.
“We have been quietly active in Japan for a number of years now,” Maddox said on a second-quarter earnings call. “I’ve been dozens of times myself, building strong relationships in a country where trust and relationships matter.”
He added, “We believe that the Wynn aesthetic and our unrelenting focus on excellence and our commitment to thoughtful, immersive entertainment will resonate well in Japan, and we look forward to competing there.”
