Las Vegas Sands President courts Osaka officials, pitches multi-billion-dollar integrated resort plan
Las Vegas Sands President Robert Goldstein met today with Osaka Governor Ichiro Matsui and Osaka Mayor Hirofumi Yoshimura to present the two officials with his company’s plans to build a casino in the western Japanese metropolis, local news outlet the Mainichi reports.
Osaka was selected last month as the winning bidder for hosting World Expo 2025, beating rival bids from Russia’s Yekaterinburg and Azerbaijan’s Baku. Analysts believe that the announcement that the city will be hosting the trade show would boost significantly its chance to become host of one of the three integrated resorts that are to be built as part of initial liberalization of Japan’s casino market.
Mr. Goldstein cited Las Vegas Sands’ success in the world’s largest gambling markets and said that his company is interested in drawing up a plan for the development of the world’s greatest integrated resort in Osaka. The gaming and hospitality giant currently operates integrated resort facilities in Las Vegas, Macau, and Singapore.
Las Vegas Sands officials have previously said that the company is ready to invest more than $10 billion in developing a hotel, casino, entertainment, and MICE property in Japan. Mr. Goldstein told local media after today’s meeting with Osaka officials that the development of a property of this kind requires significant investment and Las Vegas Sands will do what is needed.
Synergy between World Expo and Integrated Resort
During today’s meeting, the Governor of Osaka said that the prefecture envisions the creation of an area where visitors from all around the globe will be able to enjoy the synergy between the upcoming World Expo and an integrated resort.
The 2025 edition of the major trade show will take place on Osaka’s artificial Yumeshima island (Dream Island). And the area is actually where a casino resort is to be built, if the city is selected by the Japanese government as one of the preferred hosts of three such properties.
Gov. Matsui said today that the prefecture will begin assessing resort plans submitted by interested companies early in 2019 and will shortlist the approved candidates. As mentioned above, even after the company has selected a preferred casino resort developer, it will still have to receive a final approval by the Diet.
Osaka with its Yumeshima island have long been considered one of the favorites in the casino host race. The local government has been extremely supportive of the idea, seeing in it a great opportunity for the local tourism industry and economy to be boosted significantly.
The city was hit hard when the nation’s bubble economy burst, and local leaders have been trying to find a solution for its economic problems for more than 20 years. On the other hand, Osaka has grown in popularity as a tourist destination, particularly over the past five years.
The region’s rich culinary culture and plethora of sights attracted more than 11 million people last year. With that in mind, major gambling companies see a fertile market where they could set up business.
Casino Giants Courting Osaka Officials
According to an August report by news agency Reuters, at least five global gambling giants have approached Osaka’s government to express their interest in building an integrated resort there, with Las Vegas Sands, MGM Resorts International, and Macau’s Melco Resorts & Entertainment being few of those.
Reuters reported further citing official data that gambling operators and other related businesses have met with Osaka officials 119 times since May 2017. In addition, representatives from at least 11 casino companies met Governor Matsui for “courtesy calls” 25 times in the period between 2012 and May 2018.
A study by Morgan Stanley claims that an Osaka casino could annually generate $4 billion in revenue. Osaka hopes to be able to open a casino resort in 2024, or a year before World Expo.
Analysts believe that the trade show would boost the prefecture’s chances to win a casino license and that the facilities required by World Expo could then be utilized by a nearby integrated resort.
Mayor Yoshimura said today that he plans to ask interested integrated resort developers to pledge JPY20 billion of the JPY54 billion needed for an extension of a metro line to Yumeshima island that would provide visitors with easy access to the host venue of World Expo.
The Japanese government confirmed this past summer that it would issue licenses for the development of three casino resorts. The first licenses are expected to be issued sometime in 2020 and first integrated resorts are anticipated to become operational around 2025.
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