Nagasaki wants answers from Tokyo over rejection of integrated casino resort
The Nagasaki government is seeking answers from Tokyo officials on why construction of an integrated casino resort in the prefecture was rejected late last year.
At the end of December, the Japan Tourism Agency, which is responsible for reviewing IR bids from various prefectures and cities, said that Nagasaki’s casino resort proposal had been rejected. The agency questioned whether the development group behind the roughly $3.1 billion project has the financial wherewithal to make the resort a reality.
Nagasaki has partnered with Casino Austria to develop the IR for the project, which targets the Huis Ten Bosch theme park in Sasebo. This week, the Nagasaki government sent a request to the Japan Tourism Agency for more information on why the IR demonstration was rejected.
"On January 12, the county sent the agency a questionnaire outlining how the agency will review and evaluate the program," the county's statement said. “The county will review the authorities’ response and review all procedures initiated by the county.”
Nagasaki Prefecture Governor Oishi Kengo said in December that he was "surprised" and "didn't understand" the central government's decision.
Future Considerations
Oishi said that once the tourism bureau responds, the county will decide whether to revise the draft IR and resubmit the application, hoping to get a different result.
IR can be a catalyst for regional revitalization of the prefecture and help boost the regional economy of the entire Kyushu region. " said the governor.
MGM Hotels International has secured the only approved casino resort development in Japan through Osaka. MGM is one of the largest game providers in the world. The company is Nevada's largest employer and also has investments in Macau, China.
The Austrian casino is significantly smaller than MGM, raising questions about its fundraising capabilities. The company has sought to reassure Japanese officials that it has financial support from several major global financial institutions.
The Nagasaki casino operation has run into trouble after Credit Suisse, the Swiss-based investment bank and financial services firm that initially agreed to provide the bulk of the financing for the casino project, agreed last year to pay for three acquisitions via USB The cost is $25 billion. There are concerns about whether USB will be equally willing to fund casino projects.
Casinos should have a huge impact
The IR scheme that Casinos Austria wants to build includes around 100,000 square meters of casino floor with 2,200 slot machines and 220 gaming tables. The government predicts the resort will bring more than 8 million visitors to the city annually, create 10,000 new direct jobs and generate nearly $3 billion in economic activity annually.
Japanese lawmakers legalized up to three commercial casinos in 2018 at the request of Prime Minister Shinzo Abe, who believes casinos can help diversify the country's economy. Abe, known for his country's many multinational companies, believes the country should explore "leisure tourism" in resorts.
Nagasaki's economy is mainly based on the shipbuilding industry.
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Source: www.casino.org
