Sega Sammy Holdings Inc., the Japanese gaming giant known for its pachinko and pachislot business, says it’s prepared to spend “approximately” JPY120.0 billion (US$1.09 billion) towards the development of an integrated resort (IR) in Yokohama planned by Genting Singapore Ltd.
The company said that amount could “fluctuate depending on the ratio of borrowings from financial institutions and other factors in the future.”
On June 11, Yokohama City ended its request-for-proposal (RFP) period regarding commercial partners for its hoped-for IR. Local governments interested in hosting such a resort must first select a commercial partner, then apply to the national government for approval. Yokohama authorities are expected to choose a partner this summer. Up to three IRs will be permitted in Japan in the industry’s initial phase.
The Genting-Sega Sammy consortium has already met with approval from the Yokohama government. Genting Singapore Ltd. is the operator of Resorts World Sentosa in Singapore. Sega Sammy is an investor in the Paradise City casino resort in Incheon, South Korea.
The name of a second qualified RFP group wasn’t disclosed by authorities, but Japanese public broadcaster NHK reported that global operator Melco Resorts and Entertainment and Japanese contractor Taisei Corp. also qualified for the Yokohama RFP.
Genting Singapore said it plans to “create a world-class IR destination that is strategically positioned, sustainable and anchored on strong local collaborations.”
According to Maybank Investment Bank analyst Samuel Yin Shao Yang, “If Genting Singapore owns 50 percent of the joint venture, we estimate that a Yokohama IR will add SGD1.8 billion [US$1.36 billion] to earnings.”
According to GGRAsia, in May Maybank estimated that in the first 12 months of operation, a Yokohama IR could generate US$6.5 billion in gaming revenue and US$1.9 billion in non-gaming revenue.
In related news, the Japanese government plans to expand the country’s My Number ID system to cover “all the residents” in the country “by the end of the fiscal year 2022.” My Number cards have been mentioned as a way to identify local players entering Japanese casinos.
