Ed Bowers, the president and chief executive of MGM Resorts Japan, said that Japan is going to be a great gaming market. The occasion is taking place in Singapore at Marina Bay Sands.
In April, only two places applied for the right to host a casino resort, which is still pending approval. Casinos Austria International Japan Inc is the lead commercial partner for the Nagasaki prefecture application.
Under the country’s existing liberalisation programme, up to three casino resorts with casinos can be permitted nationally.
The keynote speech addressed the reasons why some people withdrew from the process of investing in the casino resort business in Japan.
Japan has been very ambitious. “They intended to take Singapore’s best work and elevate it to a new level.” At MGM Resorts, he also serves as president of global development.
IRs are not just their own attractions. They need to encourage people to come and visit. He stated that this goal has never been laid out explicitly.
The MGM Resorts executive said that the industry needs to address the Japanese government’s concerns over problem gambling and the perception of gambling being run by anti-social organizations.
The topic led to casino-entry requirements that were even more stringent than in Singapore.
He stated: “For some, it was an excessively complex business framework, and a set of IR facility requirements that raise questions about return on investment.”
The perception of excessive rules and regulations, some of which are wholly unique to Japan, could require quite a lot of effort to meet, as was the case for others.
In support of IR, Osaka is unified.
The local government support for an IR scheme in the Osaka city and prefecture was more “unified politically” than other regions in Japan, which presented MGM Resorts with the least political risk in its Japan ambitions.
MGM Resorts remained committed to its casino resort pursuit in Osaka, a scheme that requires an investment of more than JPY1 trillion, which could equate to a range between US$ 7.5 billion to US $9 billion, subject to prevailing exchange rates.
We think that Japan will be a great market for gaming. In the Tokyo area, there are 33 million people, and in the Kansai area, there are 25 million. It has a fast-growing base of overseas tourists and has a strong infrastructure.
The policy of the Japan government to allow up to three regional monopolies was right for the country.
The MGM Resorts Japan boss said that the Osaka venture was viable with the announced cap of 3 percent of the total gross floor area for gaming at the IR.
Between casino tax and entry fee payments, we expect the Osaka IR to contribute approximately JPY106 billion annually to the city and prefecture of Osaka… an equal amount will also be contributed to Japan’s national government.
The opening of the Osaka casino resort project was expected by the end of 2029, if Japan’s central government approves the scheme.
The project will be infused with both Japanese and MGM entertainment hospitality.
The firm belief that we and our partner Orix can create a project that will be commercially sustainable, delivering very strong returns, but we are convinced that our Osaka IR will ultimately be a political success is one of the reasons why we have the firm belief that we can create a project that will.
Summary:
Ed Bowers, President and CEO of MGM Resorts Japan, has said that Japan is going to be a great gaming market. We believe that Japan will be a great gaming market. It has close to 130 million people and large clusters in a few metropolitan areas, including 33 million in the Tokyo area.