In Japan, a second U.S. gaming operator has declared that it’s all in for Osaka.
The Las Vegas Sands Corp. says it will vie for an integrated resort license in the region, challenging MGM Resorts International and possibly five other operators who participated in the region’s request-for-concept period.
Others likely to bid on the Osaka license include Melco Resorts & Entertainment, whose chairman and CEO Lawrence Ho has called it the best choice, as well as Genting Singapore and Wynn Resorts, according to Inside Asian Gaming.
MGM was first to announce its “Osaka First” policy and has been wooing decision-makers in the region ever since. LVS Managing Director of Global Development George Tanasijevich recently made it clear that the Vegas-based gaming giant is interested only in the city and prefecture, which will host the 2025 World Expo.
The Osaka government is also committed to winning an IR; in the most recent election, the winning mayoral and gubernatorial candidates both ran on platforms that included the development of an integrated resort.
According to AGPNippon.com, the support of officials in Osaka may have been a deciding factor for the Sands Corp. “Public opinion polls don’t indicate support for IRs” in Yokohama, Tanasijevich pointed out, “and Tokyo seems preoccupied with preparations for the *(2020) Olympics. We think the possibilities are very low for both cities at this point.”
By contrast, he added, the Osaka government “has made it very clear what kind of IR they are looking for.”
In other Japan news, Sumitomo Mitsui Banking Corp., one of the three biggest banks in Japan, has established an Osaka-Kansai Project Team to support a series of projects in Kansai for the 2025 World Expo and the Osaka IR bid. The team of 24 staff members will “support business matching in its home region of Kansai by collecting information on relevant technology and products,” IAG reported. It could “help tackle the issue of development and access for Yumeshima,” a man-made island that will host the World Expo and is also the preferred site for an IR.
With billions of dollars ready to be lavished on an Osaka resort, an endangered seabird could threaten the whole plan. A species called the Little Tern may be using the man-made island in Osaka Bay as its breeding grounds according to Asia Gaming Brief; if that’s true, a local environmental group called Nature Osaka may challenge any substantial development there.
Meanwhile, Osaka Mayor Ichiro Matsui has confirmed that a pre-condition to Osaka selecting its IR operator partner will be their acceptance of a JPY20.2 billion (US$186 million) bill to extend the subway to Yumeshima. JPY44.4 billion has already been spent on the Yumesaki Tunnel, with the remaining costs estimated at JPY54 billion, IAG reported.
In other Japan news, Sega Sammy Holdings Inc., an entertainment conglomerate and investor in South Korea’s Paradise City casino, continues to emphasize its qualifications for a Japan IR. In a paper released in March, the company stated, “We are proud to be the only Japanese company currently aiming to draw up a grand design for a full-fledged resort and for entering the integrated resort business in a way that also involves casino operation. We believe this to be our biggest advantage.” In December, Hajime Satomi, chairman and chief executive of Sega Sammy, indicated his interest in the Tokyo metropolitan area.
Sega Sammy said it will “enhance our fundraising capability for participation in the domestic integrated resort business” and keep “JPY300 billion in cash and deposits and the credit line as an account on hand. We have the prospect to nearly achieve that goal now.”
According to GGRAsia, an IR in Yokohama—still among the top contenders for a development—could cost as much as US$12 billion to build, according to information solicited from interested parties and released by the city authorities in May. As many as six of the biggest casino operators in the world—including four with Macau operations—are said to be interested in the city, Japan’s second biggest.
