Only two bidders participate in the vying for three licenses of Casino resorts. It marks Japan’s losing hope in establishing integrated casino resorts. Lenders expect multi-billion dollar financing opportunities leading to ¥1.4trn combined debt. The only two bidders are Nagasaki and Osaka. The two candidates present after the local assembly in Wakayama went against the project.
It is uncertain whether there would be another bidder to apply for the third license. It is just that no bidder is waiting for the slot. A spokesperson from Japan Tourism Agency said that there is no certainty in the case of a number of authorisation to reach three at max. Wakayama has rejected a proposal for a ¥470bn integrated casino. It was from Clairvest Neem Ventures blowing the involved lenders.
Later, Clairvest obtained a letter of intent for a ¥325bn loan. Credit Suisse becomes the arranger. Four other financial institutions such as Cantor Fitzgerald and Hanwha Investment & Securities are some of the arrangers. In April last month, Wakayama representatives voted against the proposal. They questioned the feasibility of the financing. Both Wakayama and Credit Suisse declined to give a further comment.
One less candidate means Nagasaki and Osaka could gain benefit as a bulk of lenders keen to finance the integrated casino. But, this opportunity is also uncertain because the strong interest happened a few years ago. In 2018, Japan passed the integrated resorts implementation act.
The kick off attracted top-notch casino operators. They were Caesars Entertainment, Las Vegas Sands, Melco Resorts & Entertainment as well as Wynn Resorts. The location spread across Japan, such as Hokkaido, Tokyo, and Yokohama. Japanese lenders were highly desiring this financing opportunity. But, most operators withdrew over the last couple of years due to the pandemic.
