Integrated Resorts Retaliation in Japan: What Went Wrong?

May 4, 2022 Japan Emerging Markets Industry Updates

If you are a gambling enthusiast, the enactment of Integrated Resort (IR) legislation in Japan in 2018 has definitely been an intriguing saga to follow. It was one of the major watershed events in worldwide gaming history as the world’s third-largest economy, which was limited in pachinko and slot machines for years, opened its doors for Integrated Resorts that include casinos.

Almost all of the IR operator titans soon became interested and placed bids to seize this entire potential, and why not? Japan is bestowed with exquisite age-old heritage and endowed with cutting-edge modern conveniences. Therefore, nowhere could be a greater chance for opening an Integrated Resort from every perspective.

However, currently, the dream seems too good to be true. The once most globally appealing business opportunity is now on the edge of being abandoned.

The Diminishing Progress: Things Went Wrong

Three Integrated Resorts were to be built in the first phase. The selected cities/regions were:

Osaka-shi is located in Osaka.

Nagasaki’s Sasebo City

Wakayama in Mariana City

Regrettably, it took five years for the commission established to oversee investors and maintain these billion-dollar projects to complete the bidding procedure. In addition, the unexpected global epidemic of Covid19 had a significant impact on this process.

Meanwhile, the majority of the project’s high-profile worldwide investors have withdrawn from the projects, while others have reduced their offers.

It began when Nevada-based Caesars Entertainment withdrew from the bidding process in late 2019. Next, Las Vegas Sands and Suncity followed suit later that year. Then, due to political concerns, Genting Singapore was forced to withdraw from this project in 2021. Finally, Mohegan Sun did the same, allegedly withdrawing from the race owing to several controversial concerns.