INSIGHT - ASIA
Also, we expect any successful application to incorporate a huge emphasis on technology and advanced Japanese electronics products. So it will be really exciting to see how technology can help to transform casino gaming into a more entertainment friendly product that can be enjoyed by a much wider demographic than what you might currently see in Macau or Singapore.
How do do you think the Japanese IR’s will perform economically once they are built?
Tey will be enormously successful. Te projects will essentially have regional monopolies for casino gaming in Japan and monopolies usually make money.
Will operators be able to to secure the funding they will need for IR development because of rules and regulations such as limits on the casino floor, entry fees and high tax rates? Does this mean that they will not be able to secure loans?
As in any large integrated resort project, construction and development financing is a huge component of the overall puzzle. While the exact financing terms have not necessarily been worked out, I am very positive that any project that is granted a casino license will be easily financeable.
What other financing options do they have available to them to get involved in the Japanese market?
Tere are many financing alternatives that exist in the market, however, having a clear business and financing plan with be a critical component to the success of any proposal made to the regional and national governments.
Will consortiums be primarily Japanese-led?
construction, development, opening and execution of their respective business plans an extremely complicated undertaking. Only certain operators have the capabilities to take on such massive and expensive projects. So with certain recent operators pulling out, it is just the reality of not wanting to spend the next five years deploying so much money with a limited view of how they ultimately recover that capital. Te casinos all have different assessment of how successful their respective business models could be in Japan. It's purely a risk/reward calculation based on anticipated return on investment.
Twenty years ago, Las Vegas style casino gaming in Asia was an unknown product. Te success of Macau and Singapore has helped to spawn a huge industry with jurisdictions such as the Philippines, Cambodia and South
Korea amongst others all looking to collect valuable gaming tax revenue. While we believe the projects in Japan will ultimately produce significant free cash flows, it probably will not compare with the outsized returns the projects in Las Vegas and Singapore generated in the early days of Asian casino gaming.
What will be the key factor in helping companies succeed in their bids?
Significant cooperation with large Japanese companies and financial institutions can help to reduce the red-tape surrounding any type of large Japanese construction project. Also, a focus on the community, responsible gaming programmes, having very strict anti-money laundering programs will all help to improve an applicant’s likelihood of success.
I still believe large Japanese real estate companies need to take a leading role in the IR development. Tey have the business and political connections to help navigate a successful bid for a license. Also, they could be extraordinarily helpful in obtaining much lower cost financing from the Japanese megabanks.
Could you tell us more about the gaming sector in Macau? VIP players are decreasing but more people are visiting casinos. What other other significant recent developments have there been there?
Mass market gaming now represents a majority of the gaming revenue in Macau and we expect this trend to continue. Te Macau government has recently tried to deemphasise VIP revenues as a core component of their economy focusing on family friendly entertainment. While the junket business is still an important component of Macau casinos’ revenue segmentation, it is becoming less of a consideration.
NEWSWIRE / INTERACTIVE / MARKET DATA P45
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136
