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Genting, world casino giants bet big on the golden Japanese market

Japan’s proximity to China and a recent sharp increase in the number of Chinese tourists mean casino operators also see the potential in drawing mainland Chinese customers to casino resorts in Japan. On April 27, as Japan’s ruling coalition submitted the regulatory bill to parliament in Tokyo, executives from six global casino operators gathered in Osaka, one of the cities likely to be selected for a casino development. The six — Las Vegas Sands, MGM Resorts International, Caesars Entertainment, Galaxy Entertainment Group, Melco Resorts & Entertainment and Genting Singapore — were pitching to regional government officials and prospective partners for business. “Our investment for an integrated resort in Osaka would certainly surpass Marina Bay Sands,” George Tanasijevich, the CEO of the Singaporean casino resort that is considered Asia’s most successful. Owned by the world’s biggest casino operator, Las Vegas Sands, Marina Bay Sands was built with an investment of US$5.6 billion in 2010. In 2017, it contributed to more than 30% of the company’s US$4.9 billion pre-tax earnings. Las Vegas Sands Chairman and CEO Sheldon Adelson announced last year that the “investment in Japan could be as much as US$10 billion.” As one of the winners of Singapore’s bidding process, Tanasijevich did not fail to offer a warning to Osaka and other local authorities to “engage with bidders and seek feedback from them.” Analysts consider Las Vegas Sands a favourite to win one of the three gaming licenses in Japan. Other operators are equally enthusiastic, showcasing the uniqueness of their potential business in Japan. Ed Bowers, the senior vice president of global development for MGM, which operates the Bellagio resort and the CityCenter development in Las Vegas, emphasized his company’s partnership with Shochiku, a Japanese entertainment company. “This would allow MGM to provide world-class show business using Japanese content, a condition required by the Japanese government,” said Takashi Kiso, CEO of the International Casino Institute in Tokyo. MGM has stressed its commitment to partnering with local communities.

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