Hard Rock International Inc. has joined the elite group of major casino operators to have recently expressed interest in operating an integrated casino resort in Japan, Bloomberg reported.
Hamish Dodds, CEO of the popular US operator of an international café chain and casinos, said in an interview for the major media outlet that his company was looking for local partners to jointly develop a luxury hotel and casino complex, if the Japanese government eventually legalizes casino gambling in the country. Mr. Dodds further noted that they are ready to “either play a lead role” or form a consortium with other interested investors.
Reportedly, Japanese lower house legislators are likely to renew debates over the legalization and regulation of casino gambling on November 9. The Diet, or the country’s government, has convened for an extraordinary legislative session which will be running through late November.
The Integrated Resorts Promotion Bill was introduced to the country’s legislature in November 2013. Generally speaking, if passed into law, the proposed legislation would create a regulatory framework for the construction of two integrated casino resorts in two key locations and for their subsequent regulation.
The bill’s sponsors have brought it for consideration several times but it has failed to make much progress in the Diet due to two main factors. In the first place, there were more pressing issues that legislators had to discuss and the casino legislation was somewhat neglected.
What is more, the proposal was highly disliked by the Komeito Party, a long-standing coalition partner to the ruling Liberal Democratic Party. Komeito members have repeatedly pointed out that a legalized casino industry would not be the best thing for Japan and its residents as issues related to increased gambling activity would certainty ensue from the opening of this type of gambling venues.
However, recent key legislative appointments and changes in the country’s Diet are now considered to bode well for the casino bill. Many believe that the country has more chances to legalize its casino industry than ever before.
According to analysts, Japan’s casinos could generate revenue of between $10 billion and $40 billion, which would place the country among the world’s top gambling destinations.
Mr. Dodds told Bloomberg that the casino proposal has apparently regained momentum and that Hard Rock International would certainly be among the operators to apply for a license when and if casino gambling is legalized. The executive further noted that there will probably be a great domestic demand, given the popularity of pachinko parlors. Such facilities offer pinball-like games for gambling purposes. The parlors basically operate in the gray area, which means that they are neither regulated nor illegal.
Hard Rock International and its partner Melco International Development won on Friday a license for the development of the first casino resort in the Republic of Cyprus. Construction work is expected to commence in the first quarter of 2017.
The US-based operator has not been the only major one to have voiced interest in building an integrated resort in Japan. Last week, MGM Resorts International CEO Jim Murren told media that his company is ready to invest up to $10 billion on the establishment of such a venue. The executive revealed that if MGM Resorts wins a casino license in Japan, it would focus on metropolitan areas as potential sites for its resort. Las Vegas Sands, founded by casino mogul Sheldon Adelson, had also previously said that it would spend up to $10 billion on a luxury casino complex in the Asian country.
