Majority of locals say no
As Japan’s second largest city by population, Yokohama has become a favorite of global gaming operators seeking to develop an integrated resort in the country. That doesn’t mean the population is interested, however.
In a recent poll, 94 percent of those surveyed said they don’t want a casino in their backyard. And Yokohama Mayor Fumiko Hayashi continues to be coy about the matter. Hayashi, elected to a third term in July 2017, once was clearly in the pro-casino camp. But in recent months, she’s declared herself “a blank slate” on the matter who has not yet come to a conclusion about an IR in the market.
Pushed by Prime Minister Shinzo Abe, lawmakers legalized integrated resorts with gaming in December 2016. The country’s gaming market—which could be worth $25 billion per year or more at maturity—will start with three major integrated resorts to be chosen by lawmakers.
Despite apparent disinterest or even opposition in Yokohama, the city has received requests for information from 12 organizations including eight foreign operators. Among them are Caesars Entertainment Corp., Melco Resorts and Entertainment, MGM Resorts International and Wynn Resorts Ltd. According to GGRAsia, two unnamed domestic entities also have expressed interest in the jurisdiction, along with two additional “unspecified” organizations. The Kanagawa Shimbun reports that a likely location would be the Odaiba waterfront area, near Yamashita Pier. Officials are expected to review the RFIs and make a decision about bidding by March 2019.
Elsewhere, a total of 33 companies have reportedly submitted proposals to develop an integrated resort in Wakayama on the country’s south central coast. City officials have identified Marina City as a likely location for the IR. The 40-hectare (99-acre) man-made island already has hotels and a theme park and could accommodate 2,500 hotel rooms and convention space. It is believed that 15 international operators have expressed interest, according to CDC Gaming Reports; the government there is friendly, with Wakayama Governor Yoshinobu Nisaka saying the community is well-positioned for one of the country’s first three licenses.
Unlike reluctant Yokohama, Osaka is all in to host an IR. Since the spring of 2017, executives from 11 different casino companies have met 119 times with Osaka Governor Ichiro Matsui, who told Reuters he wants to “properly nurture the tourism industry in Osaka as one of its pillars,” with gaming a linchpin.
But even in Osaka, 42 percent of residents are opposed to a casino due to concerns about gambling addiction. Less than 20 percent support the idea, according to a March poll by public broadcaster NHK. The government has pointed out that an IR in the vicinity could create as many as 80,000 local jobs—a powerful incentive—but Professor Teruo Sakurada of Osaka’s Hannan University says those jobs would largely be part-time and low-paying. “This isn’t a sustainable model,” he said.
When it comes to commitment, Caesars Entertainment has launched a campaign called a “100-Year Partnership for Japan” that includes conceptual renderings of a Yokohama IR.
So far, Yokohama, Osaka, and Tokyo are the favorites to win IR licenses. Lawrence Ho, chairman and CEO of Melco Resorts & Entertainment, says he’s willing to spend $10 billion to break into the Japan market, but isn’t interested in Tokyo. According to Ho, an IR could be just another attraction in Tokyo, while his favorite location, Osaka, could be shaped into a cohesive entertainment destination.
The Macau News Agency reports that Abe’s recent landslide reelection is “good news for global casino firms,” as the prime minister is the cheerleader-in-chief for casinos as an economic and tourism driver.
The line of potential bidders just got longer. The latest firm to declare itself is Philippine-based Tiger Resort, a unit of Universal Entertainment. Universal was originally a Tokyo-based manufacturer of pachinko, slot machine and video game equipment.
