Hopes have dimmed that Japan’s parliament will pass a casino authorization bill by summer after one of the lawmakers spearheading the effort said the measure has encountered unspecified procedural issues.
Takeshi Iwaya, a member of the governing Liberal Democratic Party’s majority in the Diet, the lower house of the parliament, and one of the leaders of a powerful cross-party coalition backing the bill, said he did not know how long the bill might be delayed.
He did, however, indicate that two casinos in outlying regions could be part of the initial roll-out once it passes.
That would bring to four the number of casinos supporters and analysts currently believe will comprise the market, which will be dominated by two destination-scale resorts, one each in Tokyo and Osaka, capable of generating US$10 billion-$15 billion in combined revenues out of the gate, according to estimates.
As many as 12 casinos could be developed over the next 10 years, according to research published by investment bank CLSA, which could push the market to upwards of $40 billion.
The prospects have attracted an A-list of global operators, including Las Vegas Sands, Genting, MGM Resorts International, Wynn Resorts, Melco Crown Entertainment, SJM and Caesars Entertainment.
The bill is not expected to require partnerships with Japanese companies, but Iwaya said that ideally foreign operators would join forces with local businesses, noting that while Japan needs the foreign expertise, foreign operators might have trouble adapting to Japan’s particular business characteristics.
