The once-competitive race to develop three integrated resorts (IRs) in Japan has lost some momentum over the past few years, but another would-be host community has named its bidding partner.
Last week, Nagasaki prefecture announced that Casinos Austria will be its operator-partner for an IR at Huis Ten Bosch at Sasebo City. Casinos Austria finished with 697.0 points under Nagasaki’s RFP scoring system, just ahead of Oshidori International Development in second with 682.8 points and NIKI Chyau (Parkview) Group in third with 667.1 points.
According to Nagasaki officials, Oshidori had been in the lead after the first round but was bested by Casinos Austria in the final round. Several days earlier, Oshidori had issued a press release declaring it would withdraw from contention due to what it described as “restrictive and unreasonable rules” and an unethical RFP practices. Inside Asian Gaming reported that Oshidori never officially withdrew from the race, and it acted independently of its partner, U.S.-based tribal operator Mohegan Gaming and Entertainment.
Oshidori stated that it “encountered several incidents that make it question whether there have been serious ethical irregularities in the RFP process and it is only interested in participating in a process that has the highest integrity, and that is profession, transparent and based on merit.”
Masahiko Kunihiro of the Nagasaki Integrated Resort Promotion Division responded, saying, “Nagasaki prefecture has always proceeded with the public tender in a fair and equitable manner following the public tender guidelines and all relevant laws. We have already entered the final stages of the process and the results will be presented as scheduled.”
The Japan Times called the firm’s withdrawal “yet another setback for Japan’s IR process, which has seen some of the biggest names in the business already withdraw, citing issues with the regulation and proposed taxation.”
Nagasaki was the location with the highest number of remaining bidders, at just three, losing four others since the beginning of the year.
With the decision made, Nagasaki Governor Hodo Nakamura said, “We would like to express our sincere gratitude to all entities who participated in our RFP at a time when the world had faced the pandemic, and for their unique proposals that make use of their own experience and expertise.
“We also thank the members of the evaluation committee, each with their own perspective based on their area of expertise, who have taken the time to strictly evaluate the proposals.
“Going forward, our next course of action is to come to a master agreement with the priority negotiation rights holder. The prefecture will continue its efforts toward receiving national approval for developing an integrated resort in Nagasaki.”
Meanwhile, the winner of Yokohama’s mayoral race could determine if the city and prefecture eventually host an integrated resort. Eight candidates are vying for the post, the most in the Yokohama’s history.
The candidates include former Yokohama City Council member Masataka Ota, former Nagano Governor Yasuo Tanaka, former Chairman of the National Safety Commission Hachiro Okonogi, fisheries wholesaler president Yoshikazu Tsubokura, former member of the House of Representatives Mineyuki Fukuda, former Yokohama City University professor Takeharu Yamanaka, former Kanagawa Governor Shigefumi Matsuzawa and the incumbent, Mayor Fumiko Hayashi.
Only Hayashi and Fukuda favor an IR at Yokohama’s Yamashita Pier; the rest are strongly opposed, and have even made an anti-IR stance a central part of their platforms.
The Liberal Democratic Party has come out in support of an IR bid, so when LDP candidate Okonogi said he would kill the project, the party switched to a free election with no recommended candidates.
According to IAG, conservatives are divided between Okonogi and Hayashi, while Prime Minister Yoshihide Suga supports Okonogi. Thirty of 36 local city council members belonging to the party also support Okonogi.
A Yokohama IR bid would require at least a 25 percent majority of votes to proceed, at which point the plan would be evaluated at the federal level. Up to three IRs will be approved in the first phase of Japan’s casino industry. Local industry consultancy Bay City Ventures said Okonogi is “in the driver’s seat” to win, possibly dashing hopes for an IR in the community. Voters head to the polls on August 22.
Stirring the pot, on August 3 Yukio Fujiki, the influential chairman of the Yokohama Port Harbor Resort Association, told the Foreign Correspondents’ Club of Japan, “I will not allow a casino in Yokohama. I will never allow it. If a casino happens, I will commit seppuku (hara kiri) and die on its opening day.”
Known as the Don of Yokohama, Fujiki wields strong power in political and business circles in the prefecture and is the most vocal opponent to an IR at Yokohama’s Yamashita Wharf.
At the press conference, he emphasized, “The point is that no matter who becomes mayor, I will not let them build an IR in the port.”
Wakayama named Canada’s Clairvest as a partner after Suncity Holdings unexpectedly withdrew its application there. And Osaka, once the leading candidate city, now has a sole remaining bidder: the partnership of MGM and Orix Corp.
