USJ Co., operator of Osaka’s Universal Studios Japan theme park, says it is in talks with MGM Resorts International, Caesars Entertainment and Genting about partnering on one or more casino resorts in the Asian nation.
“We have operational capacity, experience know-how, and I don’t think we would be stretched to participate in more than one,” said Chief Executive Glenn Gumpel. “As a company we would like to grow outside of the current confines of the theme park.”
Prime Minister Shinzo Abe’s ruling Liberal Democratic Party is pushing a bill to legalize casinos in a special parliamentary session this autumn as part of plans to boost inbound tourism in conjunction with the Tokyo Olympics in 2020. A list of leading global operators—MGM, Caesars, Genting, Las Vegas Sands, Wynn Resorts and Melco Crown Entertainment among them—have expressed interest in investing billions of dollars in integrated resorts in Tokyo, Osaka and a handful of regional tourist destinations, a combined market which analysts expect to generate US$15 billion in gaming revenue out of the gate.
Partnerships with Japanese companies are likely to be a key to winning a license, and machine gaming giants Sega Sammy Holdings, Konami and Dynam Japan Holdings are all angling to be players as well.
Universal is counting on its experience as a differentiating factor and is also looking at Tokyo and Okinawa for potential tie-ups. Gumpel said the company may also seek to re-list on the Tokyo Stock Exchange as early as next summer as one of its financing options and is also considering an overseas listing.
USJ is also planning to expand beyond Japan into markets in China and Indonesia and is seeking to partner with Shenzhen-based theme park operator Overseas Chinese Town and has held talks with an Indonesian company for a theme park in Jakarta.
The company had sales of 95.9 billion yen (US$932 million) in the year ended March, an increase of 17 percent from a year earlier. Operating profit was up 51 percent to a record 24.2 billion yen.
Osaka’s political leadership has been pro-casino from the start and have held talks with several major gaming operators on a resort on a scale of $4 billion or more on a reclaimed island about five kilometers from USJ’s theme park.
