Japanese Prefecture Still Exploring IR

Lawmakers in Hokkaido, Japan, will convene a study group to explore the potential of a casino resort in the prefecture. So far, the central government has only approved one license, leaving two more available.

Japanese Prefecture Still Exploring IR

Members of the Hokkaido, Japan general assembly will conduct a study on feasibility of an integrated resort (IR) with casino, reports the Hokkaido Shimbun.

The news outlet revealed that “IR experts from an accounting agency” will attend a December 15 assembly meeting to discuss the proposed development. In 2016, the parliament under then Prime Minister Shinzo Abe legalized casinos in Japan, and made three IR licenses available in the first round of development.

At first, the world’s biggest gaming companies jockeyed for position to enter the market, which experts compared in importance to Macau. But strict regulations on issues such as casino size quenched the ardor of some operators. Then came the pandemic, and progress ground to a halt.
Hokkaido Governor Naomichi Suzuki originally supported an environmentally-friendly casino in the city of Tomakomai. But in late 2019, he passed on the opportunity to apply for one of the licenses, citing environmental concerns.

Locals worried about the impact of construction on the ecology of nearby Lake Utonai and the surrounding area, including protected wetlands.

Last April, only two IR bids were filed with the central government: a proposal by MGM Resorts and Orix Corp. to develop an $8 billion IR on an island in Osaka Bay, and a plan by Casinos Austria International to build a $3.8 billion IR in Sasebo City. Only the MGM-Orix bid passed muster with lawmakers.

According to GGRAsia, the governing Liberal Democratic Party (LDP) holds 54 seats in Hokkaido’s 100-seat prefectural assembly; those members are expected to support an IR bid.

In October, Kenji Koganezawa, head of the Hokkaido Tourism Organization, was quoted as saying that the agency would “look into the possibility” of a “green IR.”

Hokkaido is Japan’s largest and most northerly prefecture, located on a man-made island.