On June 2, after the withdrawal of Suncity Group from the Wakayama integrated-resort (IR) race, a subsidiary of the Clairvest Group was chosen to become the local government’s IR partner.
Clairvest Neem Ventures has pledged an “initial investment” of JPY470 billion (US$4.3 billion).
The selection was announced by Yoshinobu Nisaka, governor of Wakayama Prefecture. According to GGRAsia, the planned resort complex on Marina City Island would include 569,000 square meters (6.12 million square feet) of gross footage and 2,700 hotel rooms as well as a casino, a 6,000-capacity “international conference” center, an exhibition space and tourist attractions including an esports venue and “indoor skydiving.”
Suncity Holdings Japan, which withdrew from contention in mid-May, scored higher than Clairvest in the proposal phase, receiving 720 points out of 1,000 versus 656 for its rival. Suncity is part of Macau junket investor Suncity Group.
Suncity CEO Alvin Chau attributed the group’s departure to the ravages of Covid-19. He said the pandemic has caused an “uncertain situation surrounding a huge numbers of companies around the world” that may continue indefinitely. “The IR project procedure in Japan also is expected to take much longer. Therefore, we have considered the risks to our business and the fact that things are still uncertain and have decided to withdraw.”
Wakayama opted for Clairvest Neem. With its winning bid, it is the first private-sector IR partner to be confirmed by a Japanese local government. The partnership now must be approved at the national level.
Up to three integrated resorts with gaming were approved by the Japanese parliament in 2016. In ensuing years, Japan was widely hailed as the next “holy grail” of casino gaming, potentially profitable enough to compete with Macau, the industry’s premier market. The world’s biggest operators were expected to line up to gain entry, but the slow pace of development, concerns about onerous regulations and the high cost of entry sent some would-be bidders packing. Covid-19 was a uniquely discouraging factor and caused many global operators to dive for cover to protect their core operations, and not take on new investment in a changed world.
Clairvest’s business proposal includes an IR launch in the “autumn of 2027.”
In May, the governor acknowledged, “It is not ideal that there is only one company and we just choose them or don’t. Not making a selection means giving up on the idea of IR for a few years. I have been promoting it for a long time. There are few investment projects of this size for employment and income. I think we should definitely take this chance for the future of Wakayama.”
Osaka, too, has been left with a single bidder, MGM Resorts International. Nagasaki recently whittled its candidate pool down from five to three; the remaining bidders are Hong Kong-listed Get Nice Holdings with Japan’s Current Corp.; Oshidori International Holdings Ltd.; and Casinos Austria.
Yokohama has announced that only two operators, Genting Singapore and Melco Resorts & Entertainment, have qualified in its Request for Proposal (RFP) to develop an IR.
Genting Singapore has teamed up with Japan pachinko giant Sega Sammy Holdings and Kajima Corp. Melco has partnered with local construction and civil engineering firm Taisei Corp. A third submission from Shotoku Corp did not qualify.
In related news for Yokohama, the latest candidate for mayor, House of Representatives member Mineyuki Fukuda, has declared himself “neutral” on IRs. “If I am elected, I would look at the business plan and then make a decision,” said Fukuda, who will run as an independent.
His neutral stance likely won’t impress the so-called “Don of Yokohama,” a local power broker who has vowed to defeat any mayoral candidate who supports a casino in the region. Yukio Fujiki, chairman of the Yokohama Port Harbor Resort Association, memorably stated that he would “like to kill” any politician who supports an IR development.
