Following an RFI process carried out last summer, eight IR firms told the Yokohama municipal government that they anticipated annual revenues of between US$3.2 billion and US$8 billion and EBITDA in the US$730 million to US$1.9 billion range.
Yokohama’s entry to the race shakes up the field and will come as very bad news for candidate locations such as Tomakomai, Wakayama, and Sasebo, which presumably will be fighting amongst each other for only a single IR license to be given to a local municipality.
On the other hand, Mayor Hayashi’s open campaign for an IR license is nearly certain to bring a ferocious response from anti-casino forces in Kanagawa Prefecture, and it is not clear how the opposition of Yokohama Harbor Transport Association Chairman Yukio Fujiki will be overcome.
At least six IR major operators are expected to bid to partner with Yokohama: Caesars, Galaxy, Genting, Melco, Sega Sammy, and Wynn Resorts. It is also feasible that Las Vegas Sands will backtrack from its recent commitments to focus only on Osaka. It seems highly unlikely that MGM will do the same in light of the deeper roots of its “Osaka First” policy.
Japan legalized casinos as part of larger integrated resorts at the end of 2016. The country’s government then authorized the development of up to three such properties and they are now expected to open doors in the mid-2020s.
Under a set of requirements approved by the Japanese government earlier this year, the country’s integrated resorts will have to include large hotels with more than 100,000 square meters allocated to guest rooms, multiple attractions and entertainment options, fine dining, MICE facilities, and retail space, among others.
The casino portion of the resorts must not exceed 3% of their total floor area. Japanese nationals will have limited access to the gaming floors as part of the government’s efforts to limit the negative impact of increased gambling on the country’s residents.
Source: GMB
