Japan announced that they would be issuing licenses for development of three integrated casino resorts in the first phase. Following which, all top gambling operators from across the globe have been trying their best to stay ahead in the race of securing a casino license in Japan.
Osaka has already been accepting applications and has also announced the names of the operators who have applied for a casino license. Recently MGM Resorts announced that they are ready to invest at least $9 billion in developing the Osaka casino resort.
However, amidst all this, the Japanese government is yet to overcome the domestic political and administrative challenges and release its basic IR policy. The Japanese government has been delaying the release of its basic IR policy, which in turn impacts the entire process. As such, while it was earlier expected that Japan might have its first integrated casinos welcoming guests before the global expo in 2025, now it seems that the first IR resort in Japan would not be possible until 2026.
Also, according to research published by the Global Market Advisors (GMA), the legislative delays could push the development works to be delayed. It also cites construction challenges as one of the primary reasons for the delay.
Talking of the Osaka casino, the GMA report says that “Even under the most aggressive timeline, it would have been a challenge to get an IR open on Yumeshima by 2025, should they be awarded one of the three coveted licenses.This is because of the challenges that would face any structure of this magnitude being built anywhere in Japan, let alone a man-made island that may have its own challenges in construction.”
“If there is not a process in place by 2Q20, it is unlikely that a fully integrated resort would be open in time to meet the desires of Osaka for the World Expo in 2025, or anyone else that will be investing billions of dollars into an integrated resort,”