Speaking during the MGS Summit 2017 yesterday, the Chief Executive Officer of Capital & Innovation Co. Ltd, Mr. Takayoshi Koike claimed that it is not the central government that is entitled to select the gambling companies allowed to operate in the country, but the local ones.
At the time he spoke at this year’s edition of the MGS Summit, Mr. Takayoshi paid extra attention at the advantages forming the basis of the development of Integrated Resorts (IRs) in Japan and the occurring business potential.
Mr. Takayoshi also commented on the influence that Integrated Resorts have on the entire economy, saying that they expect the gross gaming product (GGR) of Japan to increase to a total amount of $20 billion. He further explained that the Japanese Government might give the green light to the development process of up to nine Integrated Resorts across the country. According to him, only one or two IRs might get the authorities’ approval in the initial stage.
The Capital & Innovation Co.’s CEO, who is known for his experience working at Deutsche Bank and Goldman Sachs, praised the massive potential of the Integrated Resorts and their possible future market capitalization in the country, saying they could bring between $2.5 and $3 billionto Japan.
Japan’s Economy Could Only Benefit from IRs, Says Takayoshi
The Chief Executive Officer of Capital & Innovation Co. reiterated some comments made by industry leaders on previous occasions ad claimed that consortiums would be the most appropriate business model for Japan. Mr. Takayoshi further added that the market conditions that have been set by the local Government were average ones and shared that they were very similar to the ones in Singapore.
This was exactly the reason why he shared his opinion that the major driver of success in such conditions is to see a foreign Integrated Resorts operator and a local business bidder join forces. Furthermore, he also emphasized on the fact that local business bidders would take advantage of the Government’s preferences over the process.
According to Mr. Takayoshi, the economic potential of Integrated Resorts in the region should be huge, so he used this to support his outlooks which suggest that the revenue generated by only one IR on the territory of Japan would equal about 50% of the Philippines’ gross domestic product (GDP).
This summer, the competition to host one of the first integrated casino resort in Japan heated up. At the time, the rivalry between Wakayama and Osaka to win the rights to host the gambling complex in Japan has become more serious. Such large gambling complexes are considered major tourist attractions, which is exactly why a number of places in the country have been lobbying to get the rights to host one. For some time now, some local municipalities have been making efforts to bring integrated casino resorts to Japan and revive some aspects of the country’s economy.
Now, with the casino regulation being considered again, the battle for winning the rights to host an IR has become more fierce than ever.