The year ahead - Steve Gallaway

Japan will prove to be the largest opportunity in gaming today and all hospitality companies will be active in the market evaluating the potential opportunity while the legislation is being written. Large-scale casinos will bid to build some of the world’s most iconic integrated resorts, similar to the magnitude the world saw constructed in Singapore. The IRs will create a significant number of jobs and have a positive economic impact that will ripple throughout the Japanese economy.  

Similar to what occurred in Singapore, the local population will come to realize that integrated resorts do not result in the proliferation of problem gambling, and rather have a positive impact on the fabric of society. 

Similar to what occurred in Singapore, the local population will come to realize that integrated resorts do not result in the proliferation of problem gambling, and rather have a positive impact on the fabric of society. From a developer’s perspective, one of the greatest advantages of gaming in Japan is that revenue can rely on a comparatively wealthy and sophisticated local population and existing tourism industry, rather than having to develop a business plan contingent on wooing the VIP gamer from China, a market that continually proves unreliable due to Chinese public policy. In terms of market potential, this question cannot be answered until the tax rate and number of licenses to be issued are known.

GMA projects that Macau will generate $25 billion in gaming revenue in 2017. This estimate is based on a comment made by Macau’s Chief Executive Fernando Chui in November. While we know demand is far greater than $25 billion, gaming revenue in 2017 and beyond will continue to be based on public policy out of China.

Note from Steve Gallaway, Global Market Advisors.

Other notes from: 

Andrew Klebanow, Global Market Advisors

Augustine Vinh, president and CEO of Stellar Management

Ben Lee, managing partner of IGamiX Management & Consulting

David Green, CEO of Newpage Consulting

Ebbe Groes, CEO of EveryMatrix

Harmen Brenninkmeijer, managing partner at Dynamic Partners

Jay Sayta, founder of Glaws.com

Michael Zhu, vice president, operations, planning, analysis of Innovation Group

Mike Santangelo

Sam Sheng, director of Double Square Consulting

Sudhir Kale, CEO of GamePlan Consulting

Tim Shepherd, co-founder and president of business development at Silver Heritage Group

More news from this jurisdiction

Japan, Macau, SingaporeThursday, Jan 05, 2017

Regulators and policymakers alike will come under increasing pressure to address issues such as the integrity of sports betting, whether social gaming should be regulated, what prescriptive standards and requirements should be set aside in favour of risk-based regulatory oversight, and how emerging technologies like virtual reality games should be evaluated for suitability to be offered as gambling propositions.

SingaporeWednesday, Mar 22, 2017

Singapore police have arrested 41 men and one woman for illegal gambling and gang-related activities after a five-hour raid.

JapanTuesday, Mar 21, 2017

Japan’s government will launch the headquarters of the cabinet office branch that will be responsible for the bill setting out details for its casino legislation this Friday.

JapanThursday, Mar 16, 2017

Japan’s recent referendum to legalize the development of integrated resorts has sparked an outpour of support and interest from international operators and domestic firms, all wanting to be part of this historic development in the world’s third largest economy.

Japan, ElsewhereTuesday, Mar 14, 2017

Spin Games said it will have an exclusive right to distribute new Konami content via the Spin ROC Remote Gaming Server to approved operators in Europe.

Macau, JapanTuesday, Mar 14, 2017

Galaxy Entertainment Group Deputy Chairman Francis Lui Yiu Tung says his company has studied plans for a casino in the Japanese cities of Osaka and Tokyo and it is confident of obtaining a license.

Japan, PhilippinesMonday, Mar 13, 2017

Japan’s Universal Entertainment is disposing of treasury shares through an international offering and third-party allotment to raise funds for operations at its $2.4 billion Okada Manila resort in the Philippines.