Cultural affinity for electronic games
A new study on the upcoming Japan casino market says the focus there could be on slot play, not the table games that rule in Macau, Singapore, South Korea and Saipan.
According to Global Market Advisors LLC, which released a white paper on the nascent jurisdiction earlier this month, “While table games are expected to be popular in Japan, we believe that slot machines will have a far more prominent place in Japanese integrated resorts than other Asian markets.”
GMA observed that the Japanese already enjoy electronic gaming, chiefly in the form of pachinko, pachislot and similar games. In addition, the country is home to major slot machine manufacturers including Aruze Gaming, Konami Holdings Corp. and Sega Sammy Holdings Inc., which “already understand the kinds of themes, symbols, music and game math that are appealing to Japanese players,” the report contended.
“The single greatest misconception a casino operator can make is to assume that Japanese gamers will play the same games as those players that frequent Macau,” GMA warned in the study.
The study predicts that casino operators in Japan will earmark 45 percent of their gaming floors to slot machines, 5 percent to electronic table games and 50 percent to table games. It added that slot machines would likely gain floor share over time, edging out table games.
“Blackjack is expected to be a popular table game,” the consultancy said. “Baccarat tables, with their large footprint, are not expected to dominate the gaming floor as they do in Macau. Rather, games such as mini-baccarat, whose table footprint matches blackjack, will allow operators to quickly adjust their game mix to match the needs of the market.”
Part I of legislation to bring legal casinos to Japan passed in December; Part II, which will detail the regulatory structure, tax rate, and number and locations of the casinos, is expected to be complete by the end of this year. But even before the integrated resort bill passed, most major global casino operators expressed an interest in Japan. The list includes the Las Vegas Sands Corp., MGM Resorts International, Genting Singapore Plc, Galaxy Entertainment Group Ltd., Wynn Resorts Ltd., Hard Rock International and Melco Resorts and Entertainment Ltd.
GMA says the Japanese casino gaming market could reap up to US$12.5 billion at two large resorts by the year 2025. If the country opts for “full build-out” with six casinos, that number could reach US$24.2 billion.
