A consortium which contained the casino operator MGM Resorts International from the U.S and the Orix Ltd from the Asian country of Japan is likely to be the number one candidate for being selected as the private-sector partner to Osaka, in that Japanese city’s effort to be allowed a superb casino resort.
An analyst from Fitch Ratings Incorporated has released this info, in the commentary to the GGGRasia. That was in response to our inquiry which concerned the reasons and the degree of impact for decisions made by the Melco Resorts and Entertainment Ltd based in Asia and Las Vegas Sands Corp based in the United States of America. The decision that was being made was not to pursue any further interest in being a partner with the authorities of the city of Osaka on such a casino pitch to the national government of Japan.
“The exit of Melco Resorts and Entertainment Ltd from Osaka and Las Vegas Sands Corporation have certainly boosted the chance that the Orix/MGM, which happened to be a frontrunner already, wins the request for proposal there”, by words of the Fitch Ratings Inc analyst Bumazhny who has shared this with us via e-mail.
“Nevertheless, a couple of other operators that didn’t pull out of Osaka just yet, like Wynn Resorts Ltd and Genting Group, also have some chance,” the analyst of Fitch, Alex Bumazhny added.
“Our feeling is that no matter what ends up being created in the Japanese metropolis, Osaka, is going to be high-level quality and it will also be the biggest investment that the winning operator could possibly make before he jeopardizes the return on investment thresholds. Basically, neither of the well-known public operators that are still in the race are famous for investing less money when you look at their most recent portfolios, and all of them have strong financial profiles and also an operating and developing experience”, Alex Bumazhny noted.
Casino developer and operator, Melco Resorts and Entertainment Ltd announced seven days ago that it is keen to implement the “Yokohama First” policy in order to pursue a Japan casino license. Last month, the Las Vegas Sands- that is in possession of some Macau casinos under the unit of Sands China Ltd and also running an operation of the casino duopoly in Singapore, has said that their main focus is going to be on Yokohama and Osaka in its effort to be granted to build a casino in Japan, and would back down from pursuing that endeavor in the city of Osaka.
Alex Bumazhny of the Fitch made this comment: ” The integrated casino resort projects in Japan are going to be very expensive and huge undertakings. Yokohama should probably be a more preferred site, as it makes the risk-reward to be quite manageable”.
Fitch said that the location in Osaka, a 116-acre artificial island Yumeshima, isn’t so great because of the lack of supporting amenities. On the other hand, the Yamashita Wharf site in Yokohama already had supporting amenities, making it a more desirable location.