A Japanese resort developer is planning to enter the race for one of the two casino licenses the country’s government is expected to grant as a result from last year’s legalization of casino gambling. Kamori Kanko, a Hokkaido private tourism company, announced late last week that it has inked a partnership deal with developer Niseko Alpine Developments for the redevelopment and expansion of the Hokkaido-based Rusutsu Resort.
The multi-purpose complex will undergo a planned makeover in several phases and its redevelopment and expansion will include the addition of accommodation and food and beverage facilities, golf courses, ski lifts, a theme park, and a number of other entertainment options.
The first phase of the ambitious project is estimated to cost around $200 million. The developers explained that more phases will be unveiled some time next year. The initial roll-out includes a Vale Rusutsu hotel with a spa. Other retail and entertainment facilities are expected to be launched next year. The total amount of $500 million is expected to be spent on the development scheme.
The developers said in a statement from last week that they further plan to add “groundbreaking” facilities on both regional and national level.
They also pointed out that their project contains a “strong bidding platform” for the casino resort licenses that are expected to be granted next year by the Japanese Diet. Kamori Kanko is thus joining a number of international casino developers, including Hard Rock International, Las Vegas Sands, Genting Group, and Melco Resorts & Entertainment, in the race for a chance to operate a gambling resort in Japan.
Japan’s Nascent Casino Market and Its Potential
Japan’s casino law was in the works for over a decade. The country’s government finally completed the first of a two-stage casino legalization process late last year, when it passed the so-called promotional bill, which basically legalized the provision of casino gambling within the country’s borders.
A separate legislative piece – the implementation bill – will have to be approved before construction on casino facilities will be able to commence. It is believed that the government will pass that other bill sometime next year.
The legislative piece will set the regulatory framework under which the nation’s gambling industry will be regulated. It will also provide information about the preferred locations where the first gambling resorts will be located. It is believed that the government will give the nod to the construction of two integrated resorts in two different parts of Japan.
According to analysts, the country’s casino market could be worth between $5 billion and $20 billion, when the two casino resorts are fully operational. If the government approves the implementation bill next year, it is believed that the future casino complexes will not open doors before 2023 or even 2024.
