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.

JapanFriday, Aug 18, 2017

Public hearings on the IR Implementation Bill began on Thursday with the first event held in the Cabinet Office building complex in central Tokyo.

JapanTuesday, Aug 15, 2017

The Japanese government is in the process of revising the Civil Code in order to lower the age of adulthood from 20 to 18-years old. However, it has reportedly been decided that this change will not be applied to gambling.

JapanMonday, Aug 14, 2017

The ruling coalition Komeito party remains divided over whether or not to support the forthcoming IR Implementation Bill, according to several reports in the Japanese news media.

JapanThursday, Aug 10, 2017

On Tuesday, the Kansai Association of Corporate Executives issued a public appeal regarding the concepts that they hope will guide the development of the prospective IR to be established at Yumeshima in Osaka.

JapanThursday, Aug 10, 2017

From August 17 to August 29, nine public hearings regarding the forthcoming IR Implementation Bill will be held around the country.

JapanWednesday, Aug 09, 2017

MGM Resorts has announced the appointment of former Charge d'Affaires, United States Embassy Tokyo, Jason P. Hyland as the representative officer and president of MGM Resorts Japan.