Political manoeuvres throw IR casinos development into disarray as companies withdraw from process
Prime Minister Yoshihide Suga has announced his support of close ally Hachiro Okonogi, an anti-casino candidate in the Yokohama mayoral election, embittering further the IR casino development in the country.
Local reports indicate that Suga’s support for Okonogi “smacks of a desperate about-face, since he has long touted Yokohama as a location for an “integrated resort” (IR) featuring a casino as the main draw.”
The outcome of the Yokohama mayoral race could determine what the cards hold for Suga’s political fortunes in the coming months, if he fails to rally support in his own backyard. Official campaigning for Yokohama mayor kicked off on the day the Olympics closed, with all eight candidates running as independents. The vote will be held on Aug. 22.
To confuse further the IR Casinos development, last week, Mohegan Sun’s local partner Oshidori International, in the bid for an IR license in Nagasaki, announced pulling out of the race saying the Nagasaki prefecture’s demands are “unreasonable.”
In a statement, Oshidori International said: “The restrictions imposed by Nagasaki Prefecture are unreasonable, and at present it is not possible to conduct business in a rational and effective manner. Oshidori has encountered several incidents that make it question whether there have been serious ethical irregularities in the RFP process, and it is only interested in participating in a process that has the highest integrity, and that is profession, transparent and based on merit.”
The Nagasaki prefecture said that as of Friday, it had not received official notification of withdrawal from any of the group’s despite Oshidori’s press release: “Nagasaki prefecture has always proceeded with the public tender in a fair and equitable manner following the public tender guidelines and all relevant laws,” said Masahiko Kunihiro of the Nagasaki Integrated Resort Promotion Division. “We have already entered the final stages of the process and the results will be presented as scheduled.”
The withdrawal of another key player is yet another setback for Japan’s IR process, which has seen some of the biggest names in the business already withdraw, citing issues with the regulation and proposed taxation.
Previously, the prefecture of Wakayama found itself with only Canada’s Clairvest as a partner after Suncity Holdings unexpectedly withdrew its application there. Osaka, once the leading candidate city, only had a consortium between MGM and Orix to choose from after other potential bidders left in favour of Yokohama once it declared its candidacy.
Now, all eyes will be on Yokohama, which faces mayoral elections on August 22. If Yokohama drops out, both Genting Group and Melco Resort & Entertainment will be left in the cold.
