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The proposal for establishing a casino resort in Nagasaki has been turned down.

The proposal for building a casino resort in Nagasaki's urban hub of Japan was denied due to insufficient financial and expert resources.

SymClub
Aug 22, 2024
2 min read
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The authoritative body in Nagasaki, Japan, has declined to grant approval for the construction of a...
The authoritative body in Nagasaki, Japan, has declined to grant approval for the construction of a new casino resort.

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The proposal for establishing a casino resort in Nagasaki has been turned down.

The proposal for establishing a novel casino complex in Nagasaki, Japan, has been denied approval. The Japanese Ministry of Land, Infrastructure, Transport and Tourism has declared their intention to turn down the project's development plan.

Financial concerns and implementation doubts lead to permit rejection

As mentioned in an article on the Asian Gaming Insider [English link], the proposed casino complex in Nagasaki was met with rejection due to apprehensions over the project's financing and execution.

The plan aimed to emulate the concept of the casino resort in Osaka. The forecasts for Nagasaki's project suggested that the operators could have attracted around 8.4 million visitors annually and generated a profit of 330 billion yen (approximately 2.11 billion euros) yearly. The committee overseeing the rejected construction project stated their reasons:

There's uncertainty regarding the financial security, and there's a lack of concrete data to substantiate the financial security promises from prospective investors and funding sources - Committee of the Japanese Ministry of Land, Infrastructure, Transport and Tourism, Asian Gaming Insider*

Although a casino resort in Osaka received initial approval in early April, the Nagasaki plan was still under review. Eventually, the doubts overshadowed the project, resulting in its rejection.

First Japanese casino resort set to launch in autumn 2030

In 2030, the first Japanese casino resort is scheduled to commence operations. The Japanese island of Yumeshima in Osaka Bay has been chosen as the location. Construction is anticipated to commence in the summer of 2024. The first patrons will be able to visit the casino resort in Osaka during autumn 2030.

Initially, the casino resort in Osaka was slated to open in 2029. However, due to processing delays, the scheduled opening was postponed to 2023. A 6.8 million euros investment is earmarked for the entire construction project. An estimated annual revenue of approximately 3.3 million euros is predicted.

Questions raised over the capacity to run a casino resort

Furthermore, the Japanese authority has voiced concerns about the potential to manage a casino resort. In 2021, the Nagasaki city gave the green light to proposals from five operators for the casino resort. These included:

  • Oshidori International Holdings
  • Casinos Austria International Japan
  • Current Group
  • Niki Chau Fwu (Parkview) Group
  • One Kyushu

Only the operator Casinos Austria International [English link] was able to present the necessary prerequisites, experience, and expertise for operating a casino resort in Nagasaki. However, this was not enough to persuade the committee to grant the permit.

Despite the initial enthusiasm for a casino resort in Nagasaki, recent news indicates that the project has encountered significant challenges. The Japanese Ministry of Land, Infrastructure, Transport and Tourism's committee expressed concerns about the financial security and lack of concrete data to support the investors' financial assurances, leading to the project's rejection.

Although the first Japanese casino resort in Osaka is poised to debut in autumn 2030, the proposed casino complex in Nagasaki has struggled to secure approval due to various issues.

This leads to the upcoming opening of the casino resort in Osaka, while the Nagasaki project continues to face hurdles.

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