Global operators will vie to be first in
Only weeks ago, analysts in the know said Japan’s long-stalled casino bill was unlikely to pass during an extraordinary legislative session that ended in November.
But in a last-minute squeaker before the Diet session closed, a legislative committee approved the integrated resort bill, increasing the odds that lawmakers will OK the plan before the end of the year.
According to CalvinAyre.com, the vote took place December 2, after the parliamentary session formally adjourned. The House of Representatives Cabinet committee passed the Integrated Resorts Promotion bill, which will amend the Japanese constitution and eliminate a ban on casino gambling. It’s the first step in a two-step process; a second bill will include regulatory and licensing details.
Hopes that the bill would pass began to rise last summer, when the country’s ruling Liberal Democratic Party won a majority in both houses of government for the first time in more than 25 years. Historically, the LDP has supported gaming, while the conservative Komeito Party as well as Buddhist leaders have stood in opposition.
The bill has always had the support of Japanese Prime Minister Shinzo Abe, who views gaming as part of the economic growth strategy known as “Abenomics.”
The earliest an integrated resort could open would be in 2022, says Union Gaming analyst Grant Govertsen. Japan may consider two licenses to start, one for metropolitan Tokyo and another for Osaka, while licenses for smaller locations such as Hokkaido could be issued “at some later date,” the analyst added.
Two leading contenders for those “mega-licenses” could be local firms Sega Sammy and Universal Entertainment, reported the World Casino Directory. Other big players could jump on the bandwagon too. “We expect the usual players to have a seat at the table, including most of Macau’s ‘Big Six’ and Genting Singapore,” wrote Govertsen last August, referring to Macau’s six casino concessionaires and Genting, developer and operator of Resorts World locations in Malaysia, Singapore, New York City, Manila and elsewhere.
Hard Rock International also has high hopes for Japan. Daniel Cheng, senior vice president of business development for the U.S.-based operator, recently declared, “Japan is the next Macau.” Others who have expressed interest include Sheldon Adelson, chairman and CEO of the Las Vegas Sands Corp., and James Murren, CEO of MGM Resorts International.
Hiroyuki Hosoda, chairman of the LDP’s general council and a strong casino advocate, told parliament that casino resorts will help stimulate regional economies through tourism. “It’s fundamental that the profits from casino facilities are returned to society,” he said.
“Everybody is looking at Japan,” said Lawrence Ho, CEO of Melco Crown Entertainment in an interview just before the vote. “I personally have been lobbying it for many, many years. We would be extremely interested and will definitely participate in it, if we are lucky to.”
Lucky would be the word. Global financial firm Morgan Stanley has estimated a casino market in Japan could be worth “in the range of US$7 billion to US$20 billion.”
