Japan Set To Legalize Gambling Following Succesful Tokyo Olympic Bid
While Macau enjoys the status of being the largest gambling market in the world and dominates Asia, there is a new market that could soon be the number two gambling spot in the world. With Tokyo set to host the 2020 Olympic games, Japan has received just the boost it needs that will almost certainly result in it legalizing gambling at hotel resort like complexes.
It is estimated that should gambling be legalized in Japan, their market could be worth at least $10 billion annually as well as provide employment opportunities.
Gaming powerhouses like Wynn Resorts, Caesars Entertainment Corp., Genting and Melco Crown Entertainment are just a few who are already scouting out potential locations for new casinos. Like in the US these gaming companies are looking for local partners and names such as Mitsubishi Corp. and gaming machine makers like Sega Sammy Holdings have been mentioned.
Besides the US based gambling companies interested in Japan’s casino market, local Asian operators like SJM Holdings who are Asia’s largest casino operators have also stated their desire to set up shop in Japan. Chief Executive officer Ambrose So confirmed this in an interview last week,” We can bring technical know-how to a local partner in Japan.”
Needless to say the awarding of the Olympics to Tokyo by the IOC has sent share prices in Japan’s biggest contractor Taisei Corp. soaring by up to 19% as there is expectation for guaranteed growth.
Analysts like Jay Defibaugh of CLSA Asia-Pacific Markets in Tokyo have stated that the successful Olympic bid will be beneficial towards the push to legalize casinos in Japan. He said,” We have all the ingredients to make it happen, so anything that gets the administration to put a high priority on casinos versus all the other issues they’re dealing with is good.”
Another analyst from at the Las Vegas-based Union Gaming Group, Grant Govertson echoed these sentiments by pointing out the fact that Japan could easily become the second biggest gaming market in the world overnight with estimates at $10 billion annually.
This story is one to watch as gaming companies like Wynn, Sands and MGM are already scheduled to make presentations a conference in Tokyo on Sept 17-19 with Japanese legislators in attendance.