Two major gaming companies are ready to get started in Japan.
Melco Crown Entertainment says it is in talks with several Japanese companies about getting a US$5 billion joint-venture resort open in Tokyo in time for the 2020 Summer Olympics.
“I do not envisage an integrated resort in either Tokyo or Osaka would be successful at anything under $5 billion,” said Australian billionaire James Packer, co-chairman of the Macau casino giant. “The cost for the successful applicant would probably be more than $5 billion.”
Packer visited Tokyo last month as part of a delegation of Australian business leaders accompanying Prime Minister Tony Abbott on a swing through North Asia. The subject of a casino was part of those discussions, according to news reports.
Melco Crown will be flexible about any partnership, and is talking to various companies, including real estate developers and infrastructure companies, co-Chairman Lawrence Ho has said. Melco would also be interested in tie-ups with Japanese trading houses, he said.
Pachinko giant Dynam Japan Holdings is one of the companies Melco has been talking to, according to Yoji Sato, Dynam’s chairman.
Meanwhile, MGM Resorts International Chairman and CEO James Murren says he expects to open a destination-scale casino resort in Japan by the 2020 games.
In an interview with Investor’s Business Daily, Murren acknowledged the “complicated process” that Japanese authorities have ahead of them, but said he’s confident.
“We have knowledge and information on all of the issues that have to be addressed,” he said, adding that the Las Vegas-based casino giant, which also owns a lucrative casino in Macau and is building a second in the Chinese territory, is willing to work with Japanese partners.