Would-be integrated resort (IR) developers in Osaka and Nagasaki, Japan, thought they would know by now if their project bids passed muster with the central government. But they may have to wait until next year to learn the results.
According to GamblingNews.com, Japanese lawmakers say they haven’t had enough time to review the IR proposals, which were submitted in April.
Osaka is working with a consortium led by U.S. gaming giant MGM Resorts and its local partner, Japanese financial services company Orix Corp. They have applied to build a $8 billion IR on Yumeshima Island in Osaka Bay.
Nagasaki and its development partner, Casinos Austria International, have proposed to build a $3 billion resort project at the site of the Huis ten Bosch theme park in Sasebo City.
Both development teams hope to break ground by spring with a goal of completion by 2025 or 2026. The Kyodo News says pushing the decision beyond this year could also delay the resorts’ planned opening dates: 2029 for Osaka, and 2027 for Nagasaki.
As reported by GGRAsia, Osaka Governor Hirofumi Yoshimura hopes “the prolonged examination” by the government licensing committee will not affect the prefecture’s timeline. “We want the government to give approval to us as quickly as it can,” he said.
As the clock ticks on the decision, IR opponents in both prefectures continue to battle the plans for environmental reasons and concerns about gambling addiction and crime. Osaka residents have collected more than 208,000 signatures in hopes of forcing a referendum on the matter.
Japan’s IR industry was first approved in December 2016, during the administration of Shinzo Abe. The late prime minister hoped that destination resorts would increase global tourism to Japan. The government planned to license up to three IRs in different parts of the country, with more to come after the first seven years.
Industry analysts first saw Japan as the next “holy grail” of gaming, with revenues expected to rival Macau’s. But the Covid-19 pandemic dashed those expectations, and one by one, operators dropped out of the running until only two bids were submitted.
