Enrique Razon Jr.’s gaming conglomerate Bloomberry Abandons Japan Casino Project Amid Regulatory Challenges

September 2, 2024 Philippines Casino & Hotel

Tycoon Enrique Razon Jr. has decided to withdraw his plans to build a casino in Japan, just a year after the Japanese government approved its first casino project in Osaka, scheduled to open by 2029.

Razon’s gaming conglomerate, Bloomberry Resorts Corp., which operates the Solaire integrated casinos in Metro Manila, has announced the closure of its Japanese subsidiary, Bloomberry Resorts Japan Inc. (BRJI).
The company acquired BRJI in 2019 as Japan began discussions to legalize casino gambling. However, Bloomberry has decided to liquidate BRJI due to protracted regulatory delays and uncertainties in the Japanese market. “Too long a wait for positive results [in Japan],” a Bloomberry official was quoted as saying in an August 29, 2024 report published by InsiderPH.

In a recent financial filing, Bloomberry stated that BRJI was fully liquidated in June 2024. This process involved selling off all assets and settling obligations, resulting in a gain of PHP 30.9 million for the company during the second quarter of the year.

Razon’s doubts about the Japanese venture were evident as early as 2020. He expressed frustration with the complicated regulatory environment in an interview with Inside Asian Gaming, saying, “It’s becoming a bit of a joke. The process is pretty much muddled still and nobody really knows what’s going on.”

Bloomberry, a leading integrated resort operator in the Philippines, remains focused on expanding its domestic footprint. Besides the Solaire casinos, the company also operates the Jeju Sun Hotel & Casino in South Korea, which may also be up for sale.

Despite facing challenges with high-roller revenue declines affecting its domestic gaming revenues, Bloomberry continues to pursue growth opportunities within the Philippines. The company is developing a new casino and leisure resort in Ternate, Cavite. In 2022, Bloomberry acquired 278 hectares of land in Ternate from Boulevard Holdings and Puerto Azul land. By mid-2024, it had completed the purchase of 180 hectares for approximately PHP 4.9 billion.

Stockbrokerage Unicapital Securities has a positive outlook for Bloomberry, noting that the opening of its second casino, Solaire Resort North in Quezon City, could help mitigate revenue contraction. The firm has set a price target of PHP 12.50 per share, suggesting a potential 60% upside from the current price of PHP 7.80 per share.