It is barely news to anyone with any involvement in the gambling industry that Hard Rock International and Melco Crown Entertainment are interested in investing in the newly legalized Japanese casino market. Yet, the two companies confirmed today that they would build integrated resorts in the Pacific Ocean island country, if they obtain the necessary licenses to do so.
During a conference organized by brokerage and investment firm CLSA Ltd. in Tokyo, executives from the two casino developers said that the companies they represent are ready to put significant investment and efforts into establishing multi-purpose casino resorts with luxury and high-end offering.
Hard Rock International, which operates a chain of music-themed cafés and restaurants in addition to a number of gambling venues, last month opened a Japanese subsidiary to keep itself informed about the casino regulatory developments in the country and to negotiate partnerships with local developers.
As confirmed by the company’s Chairman, James Allen, it will be looking at a 40%-60% ownership of an integrated resort development in the country. The official pointed out that they consider it particularly important that their local partners participate in the resort’s operations and that they are not treated as mere “blind investors.”
Hard Rock International has set its eyes on around 30 potential partners in the endeavor, including landowners, manufacturers, and financial enterprises.
It was only yesterday when Las Vegas Sands Chairman Sheldon Adelson said in Tokyo that his company would invest up to $10 billion into a Japanese casino resort. Today, casino tycoon Lawrence Ho, CEO of Melco Crown Entertainment, upped the stakes by saying that the operator is ready to pay as much for an integrated resort in Japan as necessary.
A legislation that is currently in the making would determine the regulatory principles under which up to two casino complexes would be built and regulated. The bill is expected to be drafted and hopefully voted on by the end of the year. It will also determine the preferred locations that would host the resorts.
Mr. Ho said during the CLSA conference that Osaka is their their top choice for home to their casino resort. With population of more than 2.5 million people and status of an important commercial center, the city will certainly be one of the most broadly discussed possible locations for one of the two gambling resorts.
Even though Japan has a long legislative way to go before seeing first casino businesses commence operations, it all shows that there will be a fierce war for the two licenses to be put for grabs. As Casino News Daily has reported on numerous occasions, the country’s newly legalized casino industry is expected to generate revenue of between $10-$20 billion, thus placing itself among the world’s most profitable gambling destinations.
