Sands wants in too
If Japan finally legalizes casino gaming, the first global gaming operator in the door could be MGM Resorts International. That’s the word from CEO James Murren, who recently told Reuters the Las Vegas-based gaming company would spend between as much as 1 trillion yen (US$9.5 billion) on an integrated resort in Tokyo, Yokohama or Osaka.
“We think there would be a tremendous amount of demand, and ultimately a public listing of these types of Japanese resorts would be very appealing,” Murren said.
With the Japanese gaming market worth up to $40 billion per year, according to brokerage CSLA, other operators including the Las Vegas Sands Corp. would also likely throw their hats in the ring. Sands Chairman and CEO Sheldon Adelson said in 2014 he might be willing to invest up to $10 billion in Japan. Potential locations for regional casinos include sites in the islands of Hokkaido in the north and Kyushu in the south.
Murren said he is thinking of a real estate investment trust in which an MGM-controlled operating company would pay rent to a property company owned by private investors and domestic and foreign companies.
“That could be an interesting way to expand the level of involvement, as there are many investors who are risk-averse and looking for yield and others who are more risk tolerant,” he said. He said a resort in Tokyo, Osaka or Yokohama could be built as early as 2022.
