A potential Las Vegas Sands casino venture in Japan was put a $10-billion price tag by Chairman Sheldon Adelson. Speaking at an investor conference in the country’s capital, the casino tycoon said that they are ready to invest at least as much as they did in Singapore. Las Vegas Sands operates the $6-billion Marina Bay Sands in the island city-state.
Mr. Adelson said that the $10-billion price would include the land to be acquired to host the casino resort. Las Vegas Sands is well-known for the development of multi-purpose integrated resorts with accommodation, gambling, retail, entertainment, convention, and dining facilities, so a project of this kind would not be something new for the Nevada-headquartered company.
However, the reasons behind its readiness to put such a massive investment into a potential Japanese casino resort should be paid a bit more attention. It took more than three years for Japanese lawmakers to finally pass a bill that legalized casino gambling in the country.
The bill received a much-anticipated affirmative vote late in 2016 and multiple international gambling operators have since announced their interest in entering the local casino market, once it was opened. It is yet too early for any solid prognoses, but it is believed that if two integrated casino resorts are built in Japan, these could annually generate revenue of up to $10 billion. According to investment and brokerage firm CLSA, Japan’s market could grow into a $25-billion one upon the addition of more casino locations.
Mr. Adelson described their possible investment in Japan as “the holy grail” of business opportunities. Other major casino operators like Hard Rock International, MGM Resorts International, and Genting Group have also expressed interest in entering the contention for a casino license.
Japanese lawmakers now have the important but very challenging task of drafting and enforcing a separate bill that would provide the regulatory framework for the operation of the integrated resorts. It is believed that they would complete the task by the end of the year so as for construction to begin in 2019 and first properties to open by 2023. That second bill would also determine the locations of the integrated resorts.
Despite a market of great potential is expected to be unveiled once first casino complexes are launched, Japanese residents did not welcome the bill’s passage in late December very keenly. Concerns have been voiced that casino gambling would have a terrible impact on society, particularly if no adequate measures are taken. Japanese lawmakers pledged back in January to create a legislative framework that would protect casino patrons effectively. Problem gambling measures will, too, be tacked onto the above-mentioned second bill.
