MGM Resorts International, which has long proclaimed its “Osaka First” policy in the runup to a Japan gaming industry, now declares that it is committed to “Osaka Only,” effectively sealing its commitment to build an integrated resort (IR) in the city and prefecture. In Japan, three IRs may be built in the first wave of development. The country’s lawmakers legalized casino resorts in late 2016.
Other global operators have bowed out of the Osaka race, including the Las Vegas Sands Corp. and Wynn Resorts, but MGM still must contend with expected bids from Galaxy Entertainment and Genting Singapore.
The U.S.-based operator has its eye on Yumeshima Island, which will host the 2025 World Expo, and hopes to open its IR before the expo opens to benefit from the incoming tourism. MGM and its local consortium partner Orix have pointed out that three major airports—Kansai International, Itami and Kobe—all will be associated with the consortium’s casino bid in Osaka.
But many industry analysts have suggested the 2025 timeline is too short, with most IRs planning to open sometime in the latter half of 2020s.
In other Japan news, GGRAsia reports, the Suncity Group has targeted Wakayama as an IR site in partnership with international architecture firm Aedas, which had a hand in developing the Venetian Macau, Sands Cotai Central and Parisian Macau. Philippine operator Bloomberry Resorts and France’s Barrière Group are also interested in a casino in Wakayama.
Meanwhile, Yokohama will launch its IR promotion council on November 6, the Nikkei Asian Review reported. The prefectural Chamber of Commerce and Industry will join eight other groups including the Kanawawa-Ken Employer’s Association on the council in their quest to bring an IR to the area. Las Vegas Sands and Melco Resorts are interested in Yokohama.
Inside Asian Gaming reports Japanese IR investment firm Current, based in Nagasaki City, has been revealed as the second company to officially enter the race to develop an integrated resort in Nagasaki after Casinos Austria confirmed its participation earlier this week. Current described a total investment budget of JPY550 billion (US$5 billion) , which takes into account infrastructure improvements for transportation Representative Director Tamotsu Suzuki told the Nagasaki Shimbun, “We hope to propose an IR that takes advantage of the beautiful Dutch-inspired area and showcases the history of Nagasaki.” Nagasaki is set to develop its IR at Dutch-inspired theme park Huis Ten Bosch.
United States-based tribal casino operator Mohegan Gaming and Entertainment (MGE) has opened an office in Hokkaido, Japan’s most northerly main island. The working title for a potential Mohegan Gaming property there, is Inspire Entertainment Resort Hokkaido; MGE has similar plans in the works for South Korea (Inspire Incheon, due to open next year) and Greece (Inspire Athens). Hard Rock International Inc.—which is MGE’s rival in Athens—hopes to win a license to build an IR in Hokkaido.
MGE has said it planned to invest between US$3.5 billion to US$4.5 billion to develop a casino resort in Japan. But some operators including Melco have said they would willingly invest US$10 billion for a Japan casino license. In recent comments, Melco Chairman and CEO Lawrence Ho said Yokohama is Melco Resorts’ priority for a casino resort in Japan. “The benefit of Yokohama is its proximity to Tokyo, but it’s very much a day-trip market. We are looking to build the world’s biggest integrated resort to make Yokohama a primary city for people to go and stay for two or three days.”
