Inside Asian Gaming

IAG AUG 2019年8月 亞博匯 62 such an intensive project based on this term, which is relatively short compared to other major jurisdictions. In Macau, where the concessions of SJM and MGM were recently extended to 2022, all concessionaires are now on the same timeline where each is set to expire in 2022, providing most operators with a 20-year license term. Singapore has also recently renewed its two licensees with 10-year extensions and further investment in the market beyond the initial 10-year term that was set to expire. The five-year window in Japan provides difficulty for operators that are interested in the large and regional locations, as the scope and reach of these projects will require a significant amount of investment. Many public reports have estimated these costs at US$10 billion or higher for an initial round of investment in a casino, hotel, MICE, entertainment, retail, F&B and other non-gaming amenities in these iconic facilities. It will be difficult for operators to realize the return on investment of these facilities within the margins of a five-year license term. Most projects of this scale typically anticipate a seven-year payback on these facilities, and taking away two years of this period provides complications in terms of the viability of the project given the limited length of time they are guaranteed a license. While it is viewed that any operator will need a Japanese partner(s) for their bid to be competitive, this fact adds a degree of stress to the level of debt-to-equity ratio that will be required for the project. Most participants on the JgC panel contended the Japanese banks that would serve as likely partners have been open to this level of investment. However, it remains an open-ended question on how much international money may flow into the market because of the shorter term and the costs associated with borrowing money under these conditions. It likely COLUMNISTS