• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

U.S. firms excited about Japan but minority role likely

Dec 15, 2016 Newsdesk Japan, Latest News, Top of the deck  


U.S. firms excited about Japan but minority role likely

The approval by Japan’s parliament – a body also known as the Diet – of a bill to legalise in principle casino gambling in the country is fuelling excitement among several U.S.-based casino operators. But two brokerages say it is likely foreign companies will only be allowed a minority stake in any Japanese gaming project.

Las Vegas Sands Corp, Wynn Resorts Ltd and Caesars Entertainment Corp – all U.S.-based firms – have reconfirmed to the Wall Street Journal their respective interest in investing in Japan, following the casino enabling bill’s approval by the Diet earlier this week.

U.S.-based casino operator MGM Resorts International went one step further, proposing to “create a coalition of Japanese business partners” to build a casino resort in Japan. The firm’s idea was included in a statement following approval by the Diet of the casino enabling bill.

“[The bill’s approval] allows us to advance our relationships with key stakeholders and together create a coalition of Japanese business partners who will collectively define a vision for a uniquely Japanese, world-class integrated resort,” the casino operator said in its statement.

The company – which has operations in Macau via subsidiary MGM China Holdings Ltd – noted it had already a “full-time development team” in Japan’s capital Tokyo. The statement added MGM Resorts was “well-prepared to pursue future expansion efforts”.

Earlier this week, Philippines-based Bloomberry Resorts Corp also reconfirmed its interest  in investing in a casino resort in Japan. The firm said Japan was a “very attractive … market but it will require a huge investment”. “So if we go for a licence, we would have to tie up with a large Japanese group or company or several Japanese companies,” the firm said in a Tuesday filing.

Genting Singapore Plc is also eyeing to join the race for a casino licence in Japan, according to a November announcement.

Casino legalisation in Japan will be a two-statute process. After the enabling bill legalising casino resorts at the conceptual level, a second piece of legislation – known as the implementation bill – will detail the specifics: how casinos are administered and regulated; the taxation regime to be applied to them; their location; and the number of licences to be issued.

Home advantage

Several investment analysts covering the gaming sector have suggested that foreign casino operators will have to find local partners in order to be able to bid for a casino licence in Japan. Those details are yet to be decided and will only be included in the the implementation bill.

Japanese brokerage Nomura said in a Wednesday note it expected “Japanese industrial/entertainment conglomerates to compete aggressively for the two to three expected [casino] licences” in Japan. It stated it was likely for any casino project in Japan “to be majority owned by Japanese companies, but there is an important role to be played by experienced international casino companies with design and operating expertise”.

Wells Fargo Securities LLC analysts Cameron McKnight and Robert Shore noted in a Wednesday memo that it was “far too early to tell which operators and approach will ultimately secure a licence”.

They added: “We do think there will be a strong emphasis on local ownership, and it’s possible U.S. operators could end up with 25 percent to 40 percent ownership interests, which is likely below expectations… In a worst case scenario, it’s possible operators could just have a standard management agreement.”

Following the passage of Japan’s casino enabling bill, the president and chief executive of the American Gaming Association (AGA), Geoff Freeman, offered to provide “partnership and support” to the country in the development of the casino sector.

“The passage of legislation in Japan that makes possible the development of integrated resorts is truly historic,” Mr Freeman said in a statement.

AGA is a U.S.-based casino industry trade body and lobbying group. The association has been heavily involved in pushing for the legalisation of casino gambling in Japan; it hosted a forum on the topic in Tokyo in May 2015.

Mr Freeman added: “After decades of study, it is clear that the expansion of our industry in Japan will produce many of the same results it has in the United States: growth in jobs, tax revenues for community services, increased travel and tourism from domestic and foreign visitors – and vast economic expansion.”

Job creation and investment promotion were two of the reasons used last week by Japan’s Prime Minister, Shinzo Abe, to argue in favour of legalising casinos in the country. Opposition parties and other social groups have however expressed concerns over potential social ills related to the casino industry, including gambling addiction and organised crime.


  • tweet
Related articles
  • LVS expects substantial investment linked to Macau retender
    LVS expects substantial investment...

    Jan 28, 2021  

  • Sands China EBITDA break even 4Q, virus threatens recovery
    Sands China EBITDA break even 4Q, virus...

    Jan 28, 2021  

More news
  • Studio City likely to raise funds for liquidity needs: specialist
    Studio City likely to raise funds for...

    Jan 28, 2021  

  • Mohegan teams with Oshidori for Nagasaki casino tilt
    Mohegan teams with Oshidori for...

    Jan 28, 2021  


Latest News

Studio City likely to raise funds for liquidity needs: specialist

Studio City likely to raise funds for liquidity needs: specialist

Jan 28, 2021  

Lucror Analytics, a research company based in Singapore that focuses on high-yield credit, says it foresees Studio City Co Ltd “would have to raise more funds” in 2022, in order to “fulfil...
Read More
Mohegan teams with Oshidori for Nagasaki casino tilt

Mohegan teams with Oshidori for Nagasaki casino tilt

Jan 28, 2021  

LVS expects substantial investment linked to Macau retender

LVS expects substantial investment linked to Macau retender

Jan 28, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"I believe that when Macau makes a decision, there is going to be a requirement to invest more"

Robert Goldstein

Chairman and chief executive of Las Vegas Sands



Most Popular

  • China said to be expanding blacklist for overseas gamblingChina said to be expanding blacklist for overseas gambling January 27, 2021
  • China diplomats warn nationals not to gamble in CambodiaChina diplomats warn nationals not to gamble in Cambodia January 27, 2021
  • Digital yuan eventually for Macau mass bets mulls BernsteinDigital yuan eventually for Macau mass bets mulls Bernstein January 22, 2021
  • Okada Manila warns against online casino, sale rumoursOkada Manila warns against online casino, sale rumours January 25, 2021
  • Cotai expansion to aid Macau EBITDA to 2019 level: CICCCotai expansion to aid Macau EBITDA to 2019 level: CICC January 26, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us