Inside Asian Gaming

INSIDE ASIAN GAMING JUNE 2018 40 FEATURES Akihiko Sasaki, the Vice Mayor of Tomakomai in Hokkaido, said that IRs provided a unique opportunity to address the issues of an ageing population and declining birth rate in Japan’s regional centers using private sector funding. “The low birth rate and ageing process has led to a hollowing out of the downtown area, making it difficult to collect taxes,” Sasaki said, adding that, “Despite the declining population, we want to reverse the trend of a declining economy.” A study released by the Hokkaido Prefecture Government on the eve of JgC found that Tomakomai City would attract the most visitors of any Hokkaido location with estimates of 8.7 million annual visitors and annual IR revenue of up to ¥156 billion (US$1.4 billion) – around double that of its nearest competitor. In Wakayama Prefecture, located in Japan’s south, estimates have the number of annual visitors pegged at four million per year and revenue of ¥140 billion, with a location in Marina City already chosen as the preferred site. DESIGN AND APPROVAL PROCESS To the victors go the spoils. Come late 2Q20 to 3Q20, the successful candidates will start finalizing their IR designs and submitting them for approval. As per Morgan Stanley’s timeline, it will take around two years for operators to prepare to break ground on their chosen site and will require certification of their respective IR development plans by the CCC and the signing of an implementation agreement. Japan’s IR candidates have promised distinctly Japanese-themed IRs that will reflect the community in which they are located. Describing his company’s partnership with Macau’s Galaxy “The ownership question will continue for quite some time before we actually get any clarity or even marriages between the international and Japanese partners.” Grant Govertsen Could an Osaka Strip of IRs still be a possibility? Entertainment Group, Jean-Louis Masurel of Monaco’s Société des Bains de Mer (SBM) said, “SBM promises the best of Europe through its international recognition, iconic brands, 155-year history and heritage. Galaxy promises the best of Asia through its unique Asian-inspired resort and hospitality experiences. “Together in collaboration with local partners we will add the best of Japan, capturing the vibrancy, vitality and uniqueness of Japan through innovative design and architecture, arts and culture, events and entertainment and technological innovation to ensure the IR is unique, authentic and unlike any other in the world.” President of Wynn Development, Chris Gordon, told JgC that Wynn Resorts would create a “new Japanese district” incorporating “multiple buildings, multiple hotels and a space to wander around in the open,” but added, “If someone travels to Japan they are here to see Japan. We would still clearly have themes of our company but it would be quintessentially Japanese. We would also make the non-gaming aspects part of the fabric of the resort.” GROUND BREAKING If all of the above goes to plan, GMA says ground can be broken on Japan’s first IRs as early as 1Q22, leaving the final opening date down to the pace of construction. “GMA believes that the earliest that large IRs will open will be late 2024 or early 2025,” Bussmann tells IAG . “While there is one regional site with an existing infrastructure that could open earlier, it is likely that between the regulatory formation, RFP Process, as well as the design, environmental approvals and overall construction that Japanese IRs will not open until the mid-2020s.”