Inside Asian Gaming

IAG JUN 2019年6月 亞博匯 40 JAPAN During a panel at JgC discussing this very topic, MGM’s Bowers revealed the five year-term was the one issue banks had already raised and in particular “how much cash flow you’ve got to fully monetize that 5-year piece. “Obviously you have to really consider how that happens,” he explained. “Do you have to increase the equity or do you have to decrease the investment and what does that mean in the context of bidding to win this license? This issue has made the financing significantly less flexible.” “It adds a level of complexity that I don’t think folks really anticipated beforehand,” offers Mohegan Gaming & Entertainment CEO Mario Kontomerkos. “When you think of the size of the projects we’re talking about … then you layer on this idea of the five-year licensing threshold, I think what that means is the banks will be there but other tranches of debt will likely be required. “You will have to have investors that are willing to take that risk and I’m not sure the national banks will be there for that.” GMA’s Gallaway notes that Japan’s impending IR regulations should clarify the length of the license term, as well as other unknowns such as how casino floor space is counted and the leasing of land itself. But with the government having also stipulated this year an expected minimum floor space of 100,000 square meters of hotel and 60,000 square meters of MICE for any and all operators, the cost of doing business in Japan is only growing larger by the day. Tokyo has yet to confirm whether it will bid for an IR. 東京尚未決定是否將競投綜合度假村運營權。