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
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