Tough Casino Licensing Procedure in Japan Labeled as Extraordinarily Challenging by Hard Rock
Japan is moving forward with its plan to issue a limited number of IR licenses in specified areas, primarily major urban regions and selected host jurisdictions. The exact number of resorts allowed has varied, but past government frameworks have indicated the approval of up to three integrated resorts nationwide. Cities such as Osaka, Yokohama, and Wakayama Prefecture have been prominently discussed as prime IR candidates.
The IR license bidding process is a competitive one, open to both domestic and international consortiums. Proposals must include development plans, investment outlines, and operational strategies, with foreign operators required to collaborate with experienced Japanese entities to ensure local compliance and community integration.
The bidding documents require details on resort size, gaming floors, hotel capacity, amenities, and community benefits. Proposals must also address social responsibility measures, such as IR-specific anti-addiction programs, employment generation, tourism promotion, and infrastructure development. Licenses often come with conditions on adhering to strict regulatory oversight by municipal and national government agencies.
The government and local authorities have set timelines for submission, evaluation, and awarding of IR licenses. The process conventionally spans several months to over a year from call for bids to license grant.
One of the companies expected to bid on Japan's licenses is Las Vegas Sands, with investment research firm Morningstar believing Sands is best positioned to find favor in Japan for the IR licenses. Sheldon Adelson's Sands has emerged as the favorite to win one of the licenses.
On June 29, 2017, Daniel Cheng, senior vice president for business development at Hard Rock, spoke before the Japan Tourism Research Association in Tokyo. Cheng, who is responsible for spearheading Hard Rock business opportunities in the Asia Pacific region, expressed concern over the absence of guidance on preferred locations, expected number of resorts, bidding outline, schedule, and partnership requirements with Japanese operators.
Tracy, who previously served as CEO of The Trump Organization and has a distinguished resume in Asian gaming, attended the Tokyo conference this week and expressed a desire for Hard Rock to work with local partners in developing a Japanese IR casino project. Hard Rock executives are preparing a pitch for a Japanese integrated resort (IR) license, and the company may have an advantage over its rivals by having insight into Sands' playbook on Asia gaming.
Hard Rock Japan LLC was formed specifically to bid on the IRs in Japan. Other companies expected to bid include MGM Resorts, Wynn, Galaxy Entertainment, Melco, and possibly Hard Rock. Sands, MGM, and Melco have each pledged investments that could exceed $10 billion if they win a Japanese IR license.
The overall approach is designed to foster a balanced development of IRs that boost tourism and economic growth while ensuring robust control over gambling activities and maintaining societal safeguards. It is important to note that the most directly relevant local laws and government announcements should be consulted for precise and up-to-date IR bidding processes, locations, and schedules.
- The casino-and-gambling industry is gearing up for the competitive IR license bidding process in Japan, with various domestic and international consortiums, including Las Vegas Sands, Hard Rock, MGM Resorts, Wynn, Galaxy Entertainment, Melco, preparing to present their proposals for integrated resorts.
- The proposed resorts, which will include gaming floors, hotels, and other amenities, will be required to adhere to strict gambling trends and regulations, as well as social responsibility measures such as anti-addiction programs and employment generation, in order to receive a casino-culture license from the government and local authorities.
