Osaka Files in Official Casino Bid

Japan’s major media outlets have previewed the prefecture of Osaka’s official proposal for an integrated casino resort (IR), with the official announcement by city officials planned for either this or the following week.

A number of major US-based casino operators are looking to invest in the country’s three future land-based properties…

…and have made an estimate that a $10 billion investment will be required in order to get one of these resorts up and running.

However, Osaka’s bid (Osaka’s IR basic plan) only calls for $8.5 billion, making it financially very enticing.

Is Osaka the Front Runner?

Osaka is only one of three Japanese prefectures that have submitted their casino resort applications – at least so far…

…the other two are Nagasaki and Wakayama, with more expected to follow suit, although some have officially declined this possibility, citing various reasons including public safety concerns.

One of operators most interested in instating a Japanese resort, Melco Resorts and Entertainment, called Osaka a “front runner” and the country’s central government’s favorite for hosting a casino. According to minutiae of Osaka’s plan for the venue – spread on 60 hectares of surface – it could be opening its doors to public as early as 2024.

Big Visitation Forecast

2025 was mentioned earlier as being the year when all three resorts could get permission for opening, although some experts such as EY consultants say that this is more likely to happen in 2027.

Whichever year it turns out to be, Osaka has got a lot to show for: it has been one of the most vocal local governments in of for a casino complex…

…and it remains very enthusiastic about the prospect one such casino could mean. The city’s IR plan makes an estimate that around 25 million annual visits can be expected and, with 18.9 million non-gambling punters and 5.9 million those wishing to partake in game of fortunes.

Is this too optimistic a forecast? Macau’s entire industry reported 36 million visits for 2018 – and Macau is Asia’s, and the world’s, biggest gambling enclave.

Race Heating Up

In of revenue, they have made a prediction of approximately $4.3 billion collected per year, along with a massive contribution to Osaka’s economy via gaming taxation.

Since the liberalization of casinos in Japan in the summer of last year, a multitude of the world’s biggest operators have begun competing for one of the three land-based licenses, each proclaiming that they are clear favorites to get them.

Among them is Caesars Entertainment whose Executive VP of Government Relations, Jan Jones Blackhurst, boldly claimed that Caesars will win the license.

Last month, Hard Rock International published the details of their planned resort projected to be constructed on island of Hokkaido, another prospective venue for the casino complex.

Source:

“Osaka wants US$8.5 billion casino investment: reports”, ggrasia.com, February 12, 2019.