Error message

  • Notice: Trying to get property of non-object in template_preprocess_imageblock_content() (line 349 of /home/agbrief/agb/sites/all/modules/imageblock/imageblock.module).
  • Notice: Trying to get property of non-object in template_preprocess_imageblock_content() (line 349 of /home/agbrief/agb/sites/all/modules/imageblock/imageblock.module).

LVS and MGM positioned to win IR bid: Morningstar

Las Vegas Sands and MGM Resorts are among the two operators most likely to receive the urban IR concessions in Osaka and Yokohama, notes Morningstar analysts.

“In our view, the companies best positioned to receive a gaming concession by year-end 2019 are those with strong track records of running world-renowned integrated resorts, especially in regions with stringent regulatory control like Singapore and the U.S," said the analysts in a Thursday note. 

Morningstar says it pegs Las Vegas Sands as most likely to win one of the two urban gaming licenses, due to its strong resort experience in Singapore, Las Vegas, and Macau, while MGM Resorts is positioned to win the other due to its strong resort experience in Las Vegas, as well as a healthy track record of dealing with partners.

Other operators are less likely to receive one of the urban licenses, due to either relatively weaker non-gaming resort experience, lack of presence in Singapore and/or the U.S., questionable practices, or portfolio restructuring, said the firm. 

In regards to the cities most likely to win the IR bid, Morningstar supports consensus that Osaka and Yokohama will take home the IR prize. 

Osaka is a favorite “due to strong government support, an already-identified location close to airports and businesses, and the need to improve its local economy and build convention space,” while Yokohama is also a favorite, “given its density and high per capita income, the advantage of having convention and exhibition facilities near Tokyo, and the fact that it already has a location identified for an integrated resort.”

As for regional candidates, Nagasaki and Hokkaido lead the pack, due to their distance from Osaka and Yokohama. Nagasaki has proximity to Korea, availability of land, while Hokkaido can leverage upon its popularity as a winter destination, said the analysts.

Finally, looking at the effect of Japan IRs on Macau, Morningstar says it forecasts Macau to lose only mid-single-digit visitation to Japan, as “it's largely immune due to China's middle-income class growth, proximity to southern China, improving infrastructure in Macau, and the advantage of a critical mass of casino resorts.”

More news from this jurisdiction

JapanMonday, Jan 15, 2018

Nagasaki Governor Hodo Nakamura faces an electoral challenge from a candidate affiliated with the Japan Communist Party as he seeks a third term.

JapanFriday, Jan 12, 2018

In a piecemeal fashion, Japan is beginning to strengthen its anti-addiction infrastructure in anticipation of the opening of its first IRs in the next decade. The latest step is the establishment of the Hyogo Kobe Addiction Countermeasures Center, which will include a hotline for telephone consultation.

JapanThursday, Jan 11, 2018

TransAct Technologies said it has teamed up with AIGC Co., a new consulting agency focused on the potential casino gaming market in Japan, to promote its products.

JapanWednesday, Jan 10, 2018

Hideo Sawada, the founder of H.I.S., one of Japan’s largest travel agencies, who is also president of Huis Ten Bosch, the theme park in Sasebo city has sketched out a grand vision of an undersea casino in Nagasaki.

JapanThursday, Jan 04, 2018

The Japan Racing Association (JRA) began implementing third-party gambling addiction exclusions at the end of December, heralding a new direction in Japanese policy expected to apply not only to current forms of gambling, but also to the IRs likely to open in the mid-2020s.

JapanMonday, Dec 18, 2017

With four separate municipal governments now considering IR licensing bids within her prefecture, Hokkaido Governor Harumi Takahashi made comments last Thursday indicating that she will maintain a neutral and largely passive policy posture.

JapanSunday, Dec 17, 2017

With an event in Tokyo on the 7th and another in Nagasaki on the 14th, the RFI process is now underway for the Huis Ten Bosch theme park site in the prefecture’s Sasebo city.