Change in government could derail plan
Chicago-based Rush Street Gaming has announced that it’s joined the long line of contenders for a Japan integrated resort license. Rush Street co-founder and Chairman Neil Bluhm expressed confidence in the firm’s chances for success, pointing to a 100 percent success rate in the markets it’s targeted.
“We’ve never lost an RFP that we’ve entered into to a competitor,” Bluhm told Asia Gaming Brief. “Our focus is on Tomakomai, Hokkaido and we’re enthusiastic about it.”
He brushed off suggestions that Rush Street is a minor player in the U.S., at least compared to others vying for a Japan license including the Las Vegas Sands Corp., Wynn Resorts, MGM Resorts International, Caesars Entertainment and Hard Rock International.
“If you combine all of the things that we run, it would be a very substantial equity value. If you rolled everything we own, including all the investors, we’d have maybe US$12 billion in equity and US$20 billion of assets.”
The company issued a formal statement saying it has “deliberately delayed our entrance to the Asian markets until we could be sure we could create something that truly aligns to our own vision and values. We bring an expertise and strong track record in establishing sustainable facilities that benefit our host communities through a focus on inclusivity and partnership. Building an IR of this kind in Hokkaido not only will transform the region from an economic standpoint, it will put Hokkaido on the map as a global travel destination.”
Bluhm said the local government could realize more than US$400 million a year “from all the different sources of revenue.” On December 1, the company opened a Tomakomai office under the name Rush Street Japan and said it will develop an IR proposal that “serves the needs of all stakeholders, including domestic and international customers, employees and the broader community at large.”
Rush Street CFO Tim Drehkoff added that Rush Street is “committed to delivering a resort that will create a lasting impact.”
Bluhm says Rush Street is focused on Hokkaido. “Our only interest right now is Tomakomai. We’re putting all of our efforts there. Somebody asked me, ‘What would happen if Hokkaido decided they didn’t want an integrated resort?’ Well, if that were the case we’d have to reconsider some other locations, but right now we’re just focusing on Tomakomai.”
Which comes to a potential roadblock. According to AGB, though the Tomakomai municipal government is enthusiastic about an IR, “dark political clouds” could derail the plan. News reports say conservative Governor Harumi Takahashi will not run for a fifth term next spring; if the opposition wins, it would “most likely bring all IR plans in the prefecture to an immediate halt.” Add to that a November poll by the Hokkaido Shinbun that showed that 65 percent of residents surveyed oppose a Hokkaido IR.
In other news, regulations for the new industry continue to emerge. Among them are a requirement that casino customers who want to spend JPY300,000 (US$2,660) or more to gamble must present proof of identity, reports the Mainichi newspaper.
In addition, a previously announced plan to cap casino floors at 3 percent of total floor area has now been officially added to the Integrated Resorts Implementation Bill, which passed into law in July.
