Once again, Japan’s central government has postponed its decision on licensing integrated resorts (IRs) in the country, this time until after local elections are held this month. Elections in nine prefectures were scheduled for April 9, with a second round to come on April 23.
Two bids were submitted at this time last year for IRs in Osaka and Nagasaki. The first is a proposed US$8 billion, at IR on Yumeshima Island in Osaka Bay, to be developed by MGM Resorts International and Orix Corp, with a proposed opening date of 2029.
During a fourth-quarter earnings call, MGM Resorts CEO Bill Hornbuckle said the U.S.-based companies would be “challenged” to meet that schedule “if we don’t hear soon” from officials.
The second IR is a $3.8 billion complex in Sasebo City, Nagasaki, adjacent to the Huis ten Bosch theme park, to be developed by Casinos Austria Japan and its local partners.
According to GGRAsia, unidentified government officials told Kyodo News that some politicians in Osaka are making IR opposition a central issue during the elections for governor and city mayor.
In Nagasaki, news media have reported on concerns about the progress of fundraising, though Governor Kengo Oishi has said there should be no difficulties. Last year Oishi said Credit Suisse Group AG could be one of several potential “financial arrangers” for the prefecture’s IR project. On news that the bank would be sold, he said he would “collect information” on how the development “affects the fundraising plan” for the resort.
