Inside Asian Gaming

www.asgam.com EDITORIAL Ben Blaschke Managing Editor We crave your feedback. Please email your comments to bb@asgam.com. Japan’s twists and turns T he announcement by mayor Fumiko Hayashi in late August that Yokohama was officially entering the race for one of Japan’s three integrated resort licenses showed just how quickly the landscape can change when it comes to how the local industry will look. Until that moment, the world’s larger IR operators were almost universally focused solely onOsaka, which for over a year had been the one major metropolitan city to have formally declared its IR intentions. Melco Resorts & Entertainment, one of six operators to exhibit at the 1st Japan IR Expo at Intex Osaka in May (alongside MGM Resorts, Las Vegas Sands, Genting Singapore, Galaxy Entertainment Group and Caesars Entertainment), even went so far as to unveil its design for an Osaka integrated resort on Yumeshima Island. “What we are planning to build here is nothing short of extraordinary, the new generation of integrated resort,” Melco’s Vice President, Design (Japan), Pim Robberechts, said at the time. Fast forward four months and Melco is one of two operators, alongside, Las Vegas Sands (LVS), to have pulled the plug on Osaka now that Yokohama has joined the race. Ironically, it took LVS only a few hours following confirmation by Yokohama’s mayor to declare it was now looking further east than previously planned. “Consistent with our long-held strategy and our track record of success in achieving it, our company will drive organic growth by strongly reinvesting in our existing portfolio of properties in Macau, Singapore and Las Vegas, reward our shareholders through our dividend and share repurchase programs and target new development opportunities that allow us to maintain our industry-leading returns on invested capital,” the company said. “We think an investment in Tokyo or Yokohama gives us the best opportunity to do exactly that.” Likewise,Melco took a leaf out ofMGM’s “OsakaFirst” playbook with the announcement in early September that it was adopting a “Yokohama First” policy. “Yokohama First means that the incredible team of experts and talents we have assembled will focus on bringing to Yokohama the best IR the world has ever seen,” said Melco Chairman and CEO Lawrence Ho. “Our team is well-positioned to contribute to Yokohama’s future and to support the community in its ambition to become a global tourism destination. This is a commitment to the city, our partners and the community there.” The delayed decision by Yokohama to declare its bid, and the immediate response from operators, suggests there are still many more twists and turns to come down the track. Tokyo itself has yet to play its hand – a prospect that promises another seismic shift should it come to fruition – while the regional landscape, currently focused on Nagasaki and Wakayama – is still awaiting a verdict from Hokkaido among others. Rumor has it that there could, in fact, be close to 20 potential IR candidates on the horizon by the time final votes are cast. It will be intriguing to see where the cards finally fall.