Inside Asian Gaming

INSIDE ASIAN GAMING JUNE 2018 38 bidding can even take place is probably 2020 or 2021, and if you build an integrated resort with Japan’s dedication to quality and their building methods in terms of perfection, it’s probably going to [take a while]. “In Macau we built these great buildings in three-and-a-half to four years but I think in Japan it’s probably going to be five or five- and-a-half years, so the soonest that an integrated resort will open in Japan I think would be in 2025.” In fact, by breaking down the implementation process into individual segments, the year 2025 emerges as the most likely scenario assuming no further unexpected delays along the way. The process once the IR Implementation Bill is passed will be as follows: FORMATION OF CASINO CONTROL COMMISSION One of the most significant steps in pushing Japan’s IR industry forward will be the formation of the Casino Control Commission (CCC) – the government watchdog charged with regulating and supervising casino operations as well as monitoring organized crime and money laundering threats. The CCC would comprise around 100 officials under the Cabinet Office and its first task would be to set out precise IR regulations. According to gaming consultancy firm Global Market Advisors, formation of the CCC and associated regulations should be complete sometime in 1Q19 although others predict a little longer. Toru Mihara, an advisor to the government during development of its IR Implementation Bill, stated earlier this year that just putting the CCC together will take a full 12 months. INITIATION OF RFP PROCESS Financial services firm Morgan Stanley has this pegged for mid-2019 and running for about a year as operators and candidate cities start the bidding process in earnest. GMA Partner Brendan D Bussmann says that “the RFP for the three potential locations and selection of operators will be fierce considering the number and caliber of operators that will seek a license.” However, he notes that there may still be an opportunity for operators to collaborate on a larger-scale development such as the Osaka Strip concept his company first touted in 2017. “If allowed under the regulatory environment, the level of investment and tourism draw would increase significantly if multiple operators would come together on a single large site such as Yumeshima Island in Osaka to form an Osaka Strip, or in the Tokyo or Yokohama area,” he said. According to Union Gaming’s Grant Govertsen, it is the lead- up to this RFP process that poses the greatest risk as rules and expectations regarding foreign ownership levels become clearer. “Even though there is more clarity on the regulatory environment in Japan,” Govertsen said during a panel session at G2E Asia in May, “the ownership question will continue for quite some time before we actually get any clarity or even marriages between the international and Japanese partners, so it’s going to be in waiting mode for a while.” LOCATION AND OPERATORS SELECTED Consensus suggests that Japan’s first three locations and IR operators will be named sometime between 1Q20 and 2Q20. The most significant takeaway from the recent JgC in this regard was the push for at least one Japan casino license to be granted to a regional location with Hokkaido, Nagasaki and Wakayama among the main contenders. Member of the House of Councillors for the LDP, Seiko Hashimoto – a former speed skater and track cyclist who represented Japan in seven Olympics – said at JgC that “having a regional casino is very important.” “I grew up in Hokkaido and I know what it has to offer in terms of the ice and the snow, the natural attractions it has throughout the year,” she said. “I also understand the benefits an IR can bring to the local economy. An IR is the perfect way to invigorate the economy of the regional centers.” FEATURES One of the most significant steps in pushing Japan’s IR industry forward will be the formation of the Casino Control Commission (CCC) – the government watchdog charged with regulating and supervising casino operations. Independent MP Mito Kakizawa says IRs in Japan could be delayed until 2030.