On Tuesday, the Japan cabinet confirmed that a second round of applications for integrated resort (IR) licences will commence in 2027.
The bidding window will open on 7 May and last for six months, until 5 November. During this period, local governments can apply for one of the two licences not awarded during the first round of bidding, which concluded in 2023.
In 2018, Japan enacted the Integrated Resort Implementation Law, authorizing up to three IRs and legalizing casino gambling within those properties. Based on their success, a second phase of development was planned to introduce seven more resort properties.
The late prime minister Shinzo Abe promoted IRs as a means to increase foreign investment and tourism. His protégé, current prime minister Sanae Takaichi, is also said to favor the developments. After her election last October, Takaichi reportedly ordered Tourism Minister Yasushi Kaneko to “promote … IRs and realize attractive stay-type tourism” in Japan.
Rocky road to integrated resorts
When Japan first legalized IRs, analysts predicted market revenue of up to $40 billion per year at maturity. That would have exceeded even Macau, which generated gross gaming revenue of $30.9 billion last year.
More cautious voices called for a more modest yet still ambitious opportunity: $19 billion annually in gaming and $6 billion in non-gaming. Global operators including Wynn, Caesars, Genting, and Melco all wanted to participate. Sheldon Adelson, the late head of the Las Vegas Sands Corp, declared he would invest “whatever it takes” to be the first to enter the Japanese market. However, public opposition, burdensome regulations, and Covid-19 halted the progress.
