Asian Gaming Powerhouse Melco Eyeing Japanese Market

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Tuesday, October 1st, 2013 | Written by Shane Larson

A few weeks ago we reported that Japan is beginning to become a target for many of the world’s most recognizable names in casino gaming, owing in part to the fact that Tokyo will be the host of the 2020 Olympic Games.

Bloomberg Businessweek is now saying that Lawrence Ho, son of the famous king of Macau gaming Stanley Ho, has set his sights on the Land of the Rising Sun. Ho’s company, Melco Crown Entertainment Ltd., is said to be looking into a couple of potential sites to develop casino resorts.

Games make Japan a very attractive proposition

The influx of tourists, athletes, and relatives of those participating in the 2020 Olympics aren’t the only thing attracting Ho’s attention to Japan. Though struggling, Japan enjoys the third-largest economy in the world, and moreover, opportunities in Macau, the undisputed capitol of Asian gambling, are dwindling for Melco.

Speaking to reporters last week, the younger Ho said, “We still have the most eggs in the Macau basket.”

“Macau is a small place,” Ho continued. “As much as I want to build a theme park, we just don’t have the land to do it.”

According to Bloomberg, tiny Macau, which occupies about half the space of the island of Manhattan, beat out the gambling revenue take last year in Las Vegas by a whopping six times.

Due to pressures in Macau, the location where Melco currently derives all of its income, the company is not only interested in the potentially lucrative Japanese gambling market. It is also seeking expansion opportunities in the Philippines as well as in the European gambling market, specifically Russia.

Need for infrastructure could spur Japanese action

Ho says he has been working to persuade legislators in Japan to legalize casino gambling, where it is currently not permitted. Despite being a well-off nation, as a result of Japan’s gambling ban, rarely do we see poker pros emerge from the nation, which also does not permit the playing of online poker or other casino games.

A pressing need for infrastructure in advance of the 2020 Olympics might push lawmakers in Japan to change their minds about allowing Las Vegas-style casino resorts to be built in the country. Ahead of a massive event like the Olympic Games, not only is there a need for hotel rooms, restaurants, and the like to serve the tourists and other visitors, but also upgrades to transportation, roads, and other infrastructure will be imperative.

Several companies are interested in developing in Japan, a market analysts predict could draw some $10 million in annual revenue should regulation come to pass. MGM, Las Vegas Sands Corp., and the Wynn Company are all said to be pursuing development opportunities in Japan.

The Wynn Company enjoys a special place in the legend of Asian gambling, as its property in Macau is widely credited as being the first western-style casino resort in all of Asia, and is often cited as ushering in a new era of gambling in the region.

As for Lawrence Ho, despite his push to bring gambling to Japan, he says he would rather his reputation be of that as “the person who built cool integrated resorts” around the world, not merely just casinos.