Yokohama formally ends casino RFP submission phase

Jun 11, 2021 Newsdesk Japan, Latest News, Top of the deck  

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Japan’s Yokohama city concluded on Friday its request-for-proposal (RFP) submission period regarding commercial partners for its tilt at getting a casino complex or integrated resort (IR), as they are known in that country.

The city (pictured) confirmed a submission from an already-qualified consortium featuring Genting Singapore Ltd, currently operator of a Singapore casino venue Resorts World Sentosa; and Sega Sammy Holdings Inc, a Japanese entertainment conglomerate that is an investor in the Paradise City casino resort at Incheon, South Korea.

Kajima Corp was also identified as that consortium’s construction partner. There was also mention in Friday’s announcement, of Obayashi Corp, and Takenaka Corp, as contractors for the construction phase.

There was additionally mention on Friday of that consortium featuring Sohgo Security Services Co Ltd.

The name of a second qualified RFP participant group was not disclosed by the Yokohama authorities on Friday.

But on May 31, Japanese public broadcaster NHK had reported global casino operator Melco Resorts and Entertainment Ltd, and Japanese construction contractor Taisei Corp, as having qualified for the Yokohama RFP.

Genting Singapore said in a Friday announcement to the Singapore Exchange that its bid to be Yokohama’s partner on a casino scheme aimed to “create a world-class IR destination that is strategically positioned, sustainable and anchored on strong local collaborations”.

Genting Singapore added that, based on its “proportionate shareholding interest in the IR project, the company’s investment amount will be less than 100 percent of the market capitalisation of the company”.

“If Genting Singapore owns 50 percent of the joint venture” proposed for Yokohama, “we estimate that a Yokohama IR will add SGD1.8 billion [US$1.36 billion] to earnings,” wrote Maybank Investment Bank Bhd analyst, Samuel Yin Shao Yang, in commentary in a note last week.

A May 19 note from Maybank had estimated that in the year 2028 – assuming that would be the first 12 months of operation of the casino scheme in Yokohama – it could generate annually US$6.5 billion in gaming revenue, and an additional US$1.9 billion in non-gaming revenue.

Local authorities interested in hosting a casino resort must first select a commercial partner, and then apply to the national government for the right to host such a facility. The Yokohama authorities are expected to chose a suitor this summer, according to a previously-announced timetable. Up to three resorts will be permitted in Japan under the relevant legislation framework.

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