The Dutch-themed Huis Ten Bosch amusement park, built along the Nagasaki coast, is one of the possible sites for a casino resort
As the Times has previously reported, the long-anticipated casino business in Japan may threaten Macau’s lifeblood.
The city is economically dependent on the casino sector, which generates a significant portion of Macau’s gross domestic product. However, a nearby competitor that can offer just as much glamor and professionalism has the potential to siphon away visitors that might otherwise try their hand on Macau’s gaming floors.
As Ben Lee, managing partner at IGamiX Management & Consulting, told the Times last year, “Japan is the most dangerous [threat to Macau] if the gaming proposal goes through […] partly due to its high quality of service.”
“Right now, there is nothing that rivals Macau in terms of capacity and the quality of our ‘hardware’ [infrastructure],” said Lee. “But other jurisdictions can create comparative advantage. By specializing, other places nearby can chip away at the Macau market.”
Meanwhile, other analysts think Macau will be less affected by the competition, citing the familiarity of the culture for Chinese travelers and Macau’s border proximity to the mainland.
Casino investors consider Japan to be one of the most lucrative gambling jurisdictions the world over.
A 2015 PWC report estimated the current market value at around USD784 million but analysts say that the gaming liberalization bill could see this swell to as much as USD25 billion.
Naturally, gaming operators, including major U.S. players such as MGM Resorts International, Wynn Resorts and Las Vegas Sands Corp., have made proposals since last year with a view to getting a share of the market.
Executives such as Las Vegas Sands’ Sheldon Adelson and MGM’s James Murren have said they’re willing to spend as much as $10 billion building an integrated resort in Japan.
“Japan is known worldwide for a unique culture of customer-focused hospitality known as ‘omotenashi,’” Wynn Resorts Ltd. Chief Executive Officer Matt Maddox said in a statement. “This important Japanese tradition of creating a unique guest experience makes it clear to us that Japan will develop extraordinary integrated resorts that are not found in any other country.”
MGM, Sands and Melco Resorts & Entertainment Ltd. want to operate a resort in a large city with easy transit options. Caesars Entertainment Corp. has said it’s flexible with location, and has unveiled mock-ups for large cities and smaller regional areas.
MGM CEO Jim Murren said the company was going to “advance our relationships with key stakeholders and together create a coalition of Japanese business partners who will collectively define a vision for a uniquely Japanese, world-class integrated resort.”
MGM said in a statement that the development would push forward its effort, together with its Japanese business partners, to create a “uniquely Japanese, world-class integrated resort.” The company, which set up a Japanese subsidiary in 2014 when Japan started discussing casinos, said it will launch an Osaka office in September.
Hard Rock Cafe International Inc. is also in the running, and has opened a local office in Hokkaido. Other casino operators seeking inroads in Japan include Galaxy Entertainment Group Ltd. and Genting Singapore Ltd. Osaka, Yokohama and Tomakomai in Hokkaido are the leading cities to win government approval for the first three locations allowed to build integrated resorts.
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