Genting has inside running as Japanese casino battle heats up
The Genting Group could be one of the firms to be granted a gambling licence in Japan through its Singapore subsidiary.
A subsidiary of Genting UK recently lost a bid to operate a new casino in Andorra, missing the opportunity to extend its tentacles into the sixth smallest nation in Europe.
But it’s bid to build a casino in Japan has received a boost, with a report by the brokerage firm Maybank Kim Eng saying the Singapore subsidiary of Genting “stands a good chance to win a licence thanks to its responsible gaming experience and solid net cash position.”
The report said that lawmakers in Japan seem to be impressed with the social responsibility measures put in place by Singapore casinos. With Genting being one of the successful operators in Singapore, it has a comparative advantage in receiving a licence to operate in Japan.
An analyst with Maybank, Samuel Yin Shao Yang, who presented the report said Genting Singapore has over $2.2 billion in reserves, which can be leveraged in their pursuit of the Japanese market.
Last Friday, Japan after several initial delays finally approved the Integrated Resort Implementation Bill. The new bill grants the construction of three large-scale gaming facilities at the initial stage and can be added to after seven years following a review.
The first licence would be issued in 2020 but the Japanese government is likely to invite bids from next year.
The first casino in the country is estimated to be ready in 2025, taking into consideration the the construction of the project.
Japan will earn up to an estimated USD $40 billion in revenue each year in the initial period.