GGRAsia – Japan govt delays IR decision due to local elections: report

Japan govt delays IR decision due to local elections: report

Mar 30, 2023 Newsdesk Japan, Latest News, Top of the deck

Japan’s national government has postponed until after local elections in April the results announcement on the Integrated Resort (IR) District Development Plans submitted by Osaka and Nagasaki for their respective tilts at getting a casino resort.

Kyodo News reported the news, quoting multiple unidentified government officials. It cited concerns over some political parties in Osaka trying to make anti-IR topics a major issue at local elections, with the policy becoming a major point of contention in the elections for governor and city mayor.

Regarding Nagasaki, there has been media speculation in Japan about the progress of fundraising, though the prefectural governor has said he has assurances there should be no difficulties.

Osaka and Nagasaki in April last year submitted their respective IR District Development Plan for a tourism complex including a casino to the national government. The two proposals have been in the hands of the national authorities since then, pending a response.

Official campaigning for local elections started across Japan last week. Elections in nine prefectures are scheduled for April 9, as part of the first round of a series of local elections.

In Osaka, gubernatorial and prefectural assembly elections are to take place on April 9. That same day, residents in Nagasaki will also elect their representatives to that prefecture’s assembly.

The second round of local elections to select mayors and assembly members in cities, towns, and villages nationwide, will be held on April 23.

Osaka has teamed with casino operator MGM Resorts International and Japan’s Orix Corp as its private-sector partners for a tilt at an IR. The resort complex would – according to past statements – require an initial investment of JPY1.08 trillion (US$8.02 billion, at current exchange rates), with a target date of 2029 for opening it.

The chief executive of MGM Resorts, Bill Hornbuckle, said in February the group would be “challenged” in terms of a previously-stated aspiration to open a Japan gaming complex by 2029, “if we don’t hear soon” from the authorities there. His comments were made on the firm’s fourth-quarter earnings call.

A figure of JPY438.3 billion has been mentioned for the fundraising for the Nagasaki scheme. Commercial partners identified for the scheme include Casinos Austria International Japan Inc.

Nagasaki governor Kengo Oishi, who last year described Credit Suisse Group AG as one of several potential “financial arrangers” for the prefecture’s casino resort project, said last week his authority would “collect information” on how the sale of the bank “affects the fundraising plan” for the scheme.