MGM Resorts Aims to Build $10BN Casino in Japan

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Monday, November 21st, 2016 | Written by Stephen Smith

While gambling has been legalized in many parts of Asia, Japan remains a country without a casino industry. That’s not for lack of trying, though, as for several years now Prime Minister Shinzo Abe (photo) has been pushing for legislation to be passed.

So far, he has been stymied by the Komeito political party, which has its roots in Buddhism and is therefore morally opposed to gambling. Nevertheless, a recent shift in the size of his own political coalition has put Abe in a position where he might finally be able to get legislation through the Japanese Diet, and MGM Resorts has already spoken out, saying that it wants to be the first operator to establish a casino in the country of 127 million people.

MGM Eager to Invest

The Chief Executive Officer of MGM Resorts, Jim Murren, recently went on the record about his company’s desire to invest in Japan. He said that if and when the Japanese Diet approves a gambling bill, that MGM Resorts would be prepared to spend anywhere from $4.8 to $9.5 billion on constructing an integrated resort with a casino, luxury accommodations, retail stores, events space, attractions and entertainment venues. His vision is to establish a major entertainment hub in a Japanese city in order to provide a place where families can spend an entire vacation without just visiting a casino.

A Shared Vision

When explaining his vision of a land-based casino resort in Japan, Murren stated that he did not see MGM Resorts just going it alone. He went on the record as saying that the resort would be looking for blue chip investors to put up some of the funds toward the project. Elaborating further, he said that his preference would be for some of those investors to be Japanese, so that more of the money generated by the casino would subsequently go back into the country.

Places mentioned where such casino resorts could be constructed include Yokohama or Osaka, and explaining the investment opportunities they represent, Jim Murren stated: “We think there would be a tremendous amount of demand, and ultimately a public listing of these types of Japanese resorts would be very appealing.”

A Huge Potential Market

It’s easy to see why those who are in favor of casino gambling hold the positions that they do, and why MGM Resorts is so anxious to get in on the ground floor if gaming legislation ever passes. It’s estimated that the Japanese gambling market could bring in as much as $40 billion each year, which would represent a huge amount of revenues for casino operators and the government alike.

One of the most popular forms of gambling currently available in Japan is a type of slot machine called Pachinko, and many industry analysts believe that Japanese people will be just as anxious to devote as much time and money playing other types of machine-based gambling games in casinos, as they do Pachinko. In fact, it’s thought that all told the country could end up with the worlds’ third largest casino market after the United States and China.

Will It Happen?

Those who are eager to see casinos spring up in Japan say that time is of the essence, with optimists expressing their hopes of having at least one casino resort open in time for the 2020 Summer Olympics in Tokyo. Other industry analysts, however, believe that such a date might be pushing it, and that it will be at least early 2017 before casino legislation is a done deal and MGM Resorts and other operators can begin seriously planning the development of new casinos.

Aaron Fischer joins MGM Resorts

In the meantime, MGM Resorts International recently announced that Aaron Fischer was to join the company as its senior vice president of corporate development. The industry veteran is seen as playing an integral part in helping the company’s continuing expansion into the Asian market, and as MGM Resorts president Bill Hornbuckle explains:

“We see the addition of his insights and unique background in research, finance and the Asian gaming industry to be of great benefit as we continue to build our global strategy.”