More Bidders Line Up for Japan

It’s getting crowded in the pool of potential Japan IR license bidders. Barriere France has now joined the throng, along with Casinos Austria. The list already includes MGM, Caesars, Melco, Genting, LVS and many more. At the same time, the number of would-be host cities is also on the rise.

More Bidders Line Up for Japan

The list of possible bidders for a Japan IR license continues to swell.

French hospitality group Barriere just declared itself and says it will establish a Japanese unit before the end of the month. And Casinos Austria International has also entered the contest; by Asia Gaming Brief’s count, CAI is No. 17 on the list and the second Europe-based firm to get in line.

Barriere will emphasize its European roots as it vies for a license, says Jonathan Strock, the company’s director of casino development who will soon become president of the Japan unit. “Barriere can offer something totally different as a luxury European brand,” Strock told the Nikkei Asian Review. “In cultivating Asian markets, we hope to use Japan as a base.”

Barriere opened its first resort in 1912 and now operates 18 hotels and 34 casinos along with numerous spas and restaurants. That history demonstrates that the company can deliver “upscale European service in a relaxed environment,” said Strock.

He noted that the French company is knowledgeable about problem gambling, a special concern to the Japanese and a primary reason most residents have not come out in favor of casinos. Strock said that doing business in Switzerland, “which has some of the world’s strictest regulations concerning gambling addiction and visitor management,” has given Barriere a deep understanding of “the debate in Japan over preventing addiction.”

In a November news conference held at the Austrian Embassy in Tokyo on November 5, CAI said it has already opened a Japan branch and hired Akio Hayashi as president of the unit. Established in 1976, CAI said it too is accustomed to operating in strict regulatory environments.

The long list of potential operators now includes Galaxy Entertainment Group, Melco Resorts & Entertainment, Hard Rock International, Mohegan Gaming, Foxwoods, the Las Vegas Sands Corp., Caesars Entertainment, MGM Resorts International and Genting, among others.

The cities and prefectures interested in hosting an IR is also growing, reported AGB. Along with frontrunners Tokyo, Yokohama and Osaka, the list may ultimately include Kawasaki, Chiba, Nagoya City, Hokkaido, Wakayama and Nagasaki. But a poll conducted by the Hokkaido Shinbun reveals that 65 percent of locals oppose a Hokkaido IR and only 33 percent support it. In Tomakomai City, located in Hokkaido’s Iburi Subprefecture, the number of people who strongly support IRs is only 21 percent.

Meanwhile, Caesars Executive Vice President Jan Jones Broadhurst says legal gaming and stringent regulations actually could fight problem gambling. Inside Asian Gaming quoted Broadhurst as saying, “There is a possibility that fewer people would suffer as a result of the introduction of effective prevention and treatment programs.”

A Caesars casino in Japan would offer far more than gaming, Broadhurst added. “IRs that we aim to open in Japan will be primarily intended for people from abroad for travel, business. And the floor area of casino is only a small part of the IR. We offer not only gambling but also a range of entertainment.”