Inside Asian Gaming

inside asian gaming January 2017 10 Cover Story expects “the devil will be in the details” and doesn’t expect “full clarity” on regulations until 2018, with no opening before 2023. Whatever the timing, each issue represents a key decision point that will set the trajectory of Japan’s casino industry. “Without knowing the tax rate, sizes of casinos allowed and any stipulations that could potentially be placed on locals gambling, it is not possible to put forth a credible estimate” of the initial market size, Mr Gallaway contends. Start with the number of IRs and their locations. The general Handicapping the Field Japan is the holy grail for casino gambling in Asia – assuming Macau is as close as casinos will come to mainland China – and nearly everyone has joined the hunt. The Japan opportunity comes as a US$20 billion capital investment cycle in Macau winds down, with few other appealing Asian options at a scale and projected return to entice major players. IRs in Japan’s major metropolitan areas could cost US$10 billion, while US$100 million might build regional IRs. Here is how multiple sources, under condition of anonymity, assess the leading Japan IR contenders. By Muhammad Cohen Bloomberry is considered a leading contender for a license in both Okinawa and Hokkaido thanks to the business connections of Chairman and CEO Enrique Razon “Requiring Japanese ownership in an IR could change how international operators approach bidding, and a mandate for Japanese majority ownership would substantially reshape the field of applicants.”