G3 INSIGHT JAPAN
INTEGRATED RESORTS
I think the government is most likely to keep one licence in reserve, just in case Yokohama, Hokkaido or Tokyo change their mind in the near future. Te law doesn’t allow for additional casinos for at least seven years after the opening of the first casino (which is now likely in 2027 – making the next possibility to open up another licence bid in 2034). If the government does keep a licence in reserve, then the fight is between Wakayama and Nagasaki for the one licence.
A lot of water has passed under the bridge since Integrated Resorts were first proposed in Japan and the person behind the regulation, Prime Minister Abe, has stepped down and his successor, Yoshihde Suga, will no longer be in the role by the time this is published. Tis presents the incoming Prime Minister, Fumio Kishida, with the perfect opportunity to reappraise the laws, as any modification to the laws up to this point would have meant a loss of face for Prime Minister Suga.
In fact, it was nigh impossible for him to make changes to the law. However, as he’s now replaced, it become possible again for the Japanese government to look at reviewing the
licensing rules were modified, they would be straight back on the plane.
Do you think the Nagasaki prefecture acted inappropriately in the awarding of the bid to Casinos Austria International as some of the losing bidders have claimed?
I spent a lot of time with the authorities in Nagasaki and even more time with Wakayama, and I don’t personally believe there will have been any problem with the awarding of the tender process.
I think what we’re looking at is bad losers failing to accept a fair result and they’re kicking up a storm. I think they’re trying to undermine the process in a bid to spoil the bid for everyone involved. I have absolutely no question about the integrity of the authorities in Nagasaki or Wakayama. I think they have run a very thorough licensing campaign.
If the choice is between Wakayama and Nagasaki, who’s the winner?
“I think the government is most likely to keep one licence in
reserve, just in case Yokohama, Hokkaido or Tokyo change their mind in the near future. Te law doesn’t allow for additional casinos for at least seven years after the opening of the first
casino (which is now likely in 2027 – making the next possibility to open up another licence bid in 2034). If the government does keep a licence in reserve, then the fight is between Wakayama and Nagasaki for the one licence.” Jonathon Strock, JS Consultancy
licence duration and some of the more general points that can be improved.
How much of a delay could a review of the legislation inflict on operators?
Well, we’re currently not looking at the first casino opening until at least 2027, so it’s probably worth waiting until 2029 to have a decent, profitable series of Integrated Resorts, as opposed to one opening sooner without the required investment.
If operators start to try to find savings and make cutbacks, rather than creating a world class offering, then the intention of the IR project will be lost.
If the licences are reconsidered, do you think we’d see a return of operators that have abandoned their projects to date?
I’d say most definitely yes. Most casinos are fairly small companies worldwide and I met a lot of US and Asian colleagues in Japan and generally speaking, if some of the key sticking points of the
P38 WIRE / PULSE / INSIGHT / REPORTS
In 2014, on my big tour of Japan, I pretty much decided upon Wakayama back then. I think it’s the best place for several reasons. Firstly, it’s half an hour from Osaka airport, which is one of Japan’s largest international airports. It is two hours flying time from Shanghai.
Te local government is also very much behind the project and is well connected in Tokyo, which shouldn’t be understated. Te Secretary General of the Liberal Democratic Party, the ruling party in Japan, is from Wakayama and still represents the prefecture in the parliament.
Wakayama makes political and economic sense. Te city used to be a major steel producer, but it lost Nippon Steel in the 1980s when the factories moved to South Korea, and as an industrial centre it has been in decline ever since. Osaka is only an hour away, which has meant a drain on the population as the young have moved away from Wakayama to the bigger city. It is essential for the existence of Wakayama to secure a project of international standing that brings investment, tourism and jobs.
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