Could be the primary market segment
Japan’s second largest city could be the country’s leading casino market, according to a white paper issued by Global Market Advisors. Yokohama, located south of Tokyo, has a local market population of about 38.6 million adults with the potential to generate about $5.6 billion per year in gross gaming revenues, according to a report on the study in the Asia Gaming Brief.
If Japan authorizes two integrated resorts, one in Osaka and one in Yokohama, the latter would “have the largest primary market segment of any study that GMA has ever completed since its inception in 2005.”
This IR’s primary market segments are expected to be Kanagawa and Tokyo, with secondary market segments in Saitama and Chiba and tertiary market segments in Yamanashi, Shizuoka, Ibaraki, Tochigi and Gunma, GMA predicted.
If a neighboring IR is developed in Tokyo, the estimated GGR out of Yokohama could still reach about $3.5 billion from local visitors, GMA believes.
Another first scenario could include IRs in Osaka and Yokohama with two smaller resorts in Hokkaido and Sasebo. A third scenario with just several IRS clustered in Osaka could produce projects total GGR including tourism of more than $24.2 billion, the company estimates.
Raymond Chan, co-founder and CEO of gaming technology company TGG Interactive told Inside Asian Gaming the market could be worth US$40 billion annually.
“Japan has been preparing itself as potential gaming hub in Asia for a long time and it is the third largest economy in the world,” he said. “There’s no doubt that the local economy will benefit and more importantly, we are expecting innovative ideas and creativity added into the gaming industry from Japan due to its very strong cultural background and long tradition in innovative product design and marketing.”
