Las Vegas gaming and hospitality giant Caesars Entertainment Corp. has dropped out of the race for a casino license in Japan just as its rivals are stepping up preparations to bid for the right to build one of the nation’s first three integrated resorts with dedicated casino gambling areas.
The announcement about Caesars’ decision not to pursue development opportunities in Japan comes just weeks after it emerged that the company had also lost interest in bidding for a license for the establishment of a casino resort near the Greek capital, Athens.
In a statement released Wednesday, the Las Vegas-based casino operator said that it would instead focus its attention on its current business plan, which includes Caesars’ $17.3 billion merger with Reno, Nevada-headquartered rival Eldorado Resorts. The deal is subject to regulatory approval and is expected to close sometime next year.
Caesars’ CEO, Tony Rodio, said in Wednesday’s statement that their decision to drop out of the Japanese casino race was “driven by sensitivity to the significant decisions Japan’s government and business partners will likely be making later this year to advance the process.”
Last summer, the Japanese government passed the second and final bill in its long-running effort to bring casino gambling to the country in a bid to boost tourism and international visits. The country authorized the development of up to three integrated resorts that will feature casinos, among other amenities.
Domestic Focus
Caesars pulling out of Japan’s casino race and its recent decision to no longer pursue a license in Greece indicate that the company would likely focus more of its attention on its domestic business under Eldorado’s stewardship.
The combined entity will be the largest US casino operator by number of properties. And it will also look to dominate the nation’s growing sports betting space.
Caesars announcement that it has decided to abandon its Japanese plan arrived just as two of its biggest rivals reaffirmed their commitment to taking part in the nation’s casino license race. Last week, Las Vegas Sands announced that it would no longer pursue development opportunities in Osaka and would instead focus on such opportunities in Tokyo and Yokohama.
MGM Resorts International said that it has remained firmly determined to pursue a license for the development of an integrated casino resort on Osaka’s Yumeshima artificial island.
Caesars’ Chairman, Jim Hunt, said on Wednesday that:
“As Caesars has pursued a license to operate in Japan over many years, we have been treated with respect and goodwill by Japanese government, business and community leaders, and with kindness by all the Japanese people we have encountered during this journey. We are grateful for the country’s receptivity to Caesars.”
Caesars was among the 12 companies that responded in Yokohama’s request-for-information process that took place earlier this past spring. The city said back then that the process did not mean that it would join the race to host one of Japan’s three integrated resorts, but it announced its official bid earlier this month.
According to some analysts, Japan could become Asia’s second largest casino market behind Macau, when its first gambling venues open doors. This is why Caesars’ decision to pull out of the race would surprise many. The company missed an opportunity to win a license in Macau in the early 2000s, unlike rivals MGM, Sands, and Wynn Resorts, which currently operate resorts in the Chinese special administrative region known to be the world’s largest casino market.
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