That is according to an analyst from Fitch Ratings in commentary to GGRAsia. It was in response to an enquiry of the specialized media regarding the impact of, and reasons for, respective decisions by Las Vegas Sands Corp, and then by Melco Resorts and Entertainment, not to pursue any further their interest in partnering with the Osaka authorities on such a casino pitch to Japan’s national government.
“The exit of Las Vegas Sands and Melco from Osaka certainly increases the probability that the MGM/Orix consortium, which was already a strong contender, wins the RFP [request-for-proposal] there,” Fitch analyst Alex Bumazhny told GGRAsia.
“However, a handful of other operators that have not pulled out [of Osaka] yet, such as Genting and Wynn, also have a decent chance,” the Fitch analyst noted.
“Our sense is that whatever ends up being built [in Osaka] will be world class and will be the maximum investment the winning operator could make before jeopardising their return on investment thresholds. None of the major public operators that are left in the race are known for underinvesting when looking at their recent portfolios, and all have solid financial profiles as well as development and operating experience,” Bumazhny added.
Casino operator and developer Melco Resorts announced last week that it would adopt a “Yokohama First” policy in its pursuit of a Japan casino licence.
In late August Las Vegas Sands had said it would focus on Tokyo and Yokohama in its effort to be allowed to build a casino resort in Japan, and would no longer pursue such an opportunity in Osaka.
Source: GMB / GGR Asia
