Osaka Mayor Ichiro Matsui and Governor Hirofumi Yoshimura—both ardent supporters of the plan to bring an integrated resort (IR) to the Japanese city and prefecture—have put their plan on the shelf for now, due to the devastation wrought by Covid-19.
Last year, the leaders actually swapped jobs to help advance the IR cause. In an unorthodox but successful gambit, former Mayor Yoshimura and former Governor Ichiro Matsui, both approaching the end of their terms, resigned their positions and ran for each another’s political seats so they could maintain power and push to win one of Japan’s first three casino licenses. Both were elected in April 2019.
Their party, Osaka Ishin, also endorsed the plan to bring an IR to Yumeshima Island, which will host the World Expo in 2025. The expo could attract as many as 28 million visitors to Osaka; for a time, local officials and the presumed developers, MGM Resorts International and its consortium partner, Japanese financial services Orix Corp., were hoping to get the property built and ready to open in time for the six-month exhibition.
That plan, too, went by the wayside, but it took place several months before the viral outbreak, when developers realized the timeline was simply too short to develop a multibillion-dollar resort on Yumeshima, a manmade island in Osaka Bay. In February, Osaka authorities said the only qualified applicant for its RFP phase was the MGM Resorts-Orix partnership, but the consortium still must undergo the full request-for-proposal (RFP) process before it officially becomes the developer of choice.
Now, of course, the coronavirus has completely shut down the process. According to GGRAsia, authorities say a new deadline will be set once the national government issues its basic IR policy.
Local governments in Japan that want to host an IR must apply to the central authorities. A maximum of three resorts will be permitted in the first phase of liberalization, with more to be added after seven years, based on the success of the first phase. The basic policy is due to set out the criteria by which casino applications will be assessed by the national government.
Meanwhile, an MGM Resorts Japan LLC representative told GGRAsia that the pandemic has “affected business travel and the ability of members of [MGM’s] Las Vegas team to travel to and from Japan to meet and continue discussions with Osaka prefecture/city.”
“The desire of operators to expand to Osaka remains the same, but we have not been able to make progress due to the COVID-19 pandemic,” said Mayor Matsui, signaling the deadline will be postponed for about six months.
Kyodo News reported last week that travel from Japan to Vietnam would “partially resume” as one of the first steps to easing international travel restrictions. According to the news outlet, Japan currently bans travelers from more than 100 countries and regions.
As of June 22, more than 18,600 people had tested positive in Japan for Covid-19.
In other Japan news, at a June 17 press conference held by the Japan National Press Club, five political candidates were asked for their views on an IR bid for Tokyo’s waterfront.
Reiwa Shinsengumi representative Taro Yamamoto said bringing a global operator into the picture—like Las Vegas Sands, which recently withdrew from the race, would mean “the financial assets of Japanese people are given to an overseas company.”
“This country is already overflowing with gambling,” Yamamoto said. “Sands has withdrawn and it is probably fair to say that Japanese IRs have reached a dead end. As the capital ,we should say clearly that we won’t do it, so why won’t you say it?”
Tokyo Governor Yuriko Koike said there are advantages to IRs, particularly in foreign tourism and economic growth, but they are offset by the risk of gambling addiction.
Taisuke Ono, former deputy governor of Kumamoto Prefecture, said he supports IRs and said they can become a major attraction of the city, but added measures to tackle gambling addiction are essential. He added that the selection process must be clear and transparent.
Kenji Utsunomiya, former chairman of Nichibenren, said Japanese culture, traditions and the natural environment can attract foreign visitors to Japan. He said an IR would cause more harm than good, bringing crime, gambling addiction and debt issues. He said politicians should consider morals and ethics rather than the economic growth casinos could bring.
