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Japan to Reopen Casino Integrated Resort Bidding in 2027
When Japan approved a bill that legalized casinos in the country, and allowed 3 licenses for integrated resorts, it was met with great speculation about a tourist gambling hub that could steal the spotlight from Macau. The Japanese Integrated Resort Implementation Law was formed to launch 3 such resorts initially, with a second phase that would see Japan adding 7 more locations. However, the difficulties that lawmakers had with building public consensus, the highly strict legislation, and the social and financial impacts of COVID-19 pretty much killed the momentum that was building around this ambitious project.
One bid, MGM Osaka, did get approval, but the other 2 casino licenses were shelved. That is, until now. As the Japanese authorities publicly announced that the bidding procedure will recommence from 2027, and with it, the Japanese gambling hub project will be put right back on track. It may take years before the first phase finally comes to fruition, but for the meantime, we have progress. And it could help build anticipation once again around MGM International’s pending project in Osaka.
Japan Open to IR Bids from 2027
Applications for the remaining two integrated resort casino bids will be accepted from May 7, 2027. It will run for 6 months, until the 5th of November, and this procedure will involve local governments applying for one of the two licenses. In this step, the major cities and prefectures will submit proposals for their integrated resort license plans. The operators, who are key players in the process, will not actually directly bid for these licenses. Instead, they have to form partnerships with local governments or organizations, and come up with a proper framework that can be reviewed and hopefully approved.
When MGM Resorts International bid for the casino in Osaka, they partnered with Orix Corporation to gain access to the right permits, zoning, and help bolster local approvals. The steps are actually pretty straightforward:
- Local goverments decide to host a casino#
- They prepare bid packages
- These organizations can partner with private operators
- The bids are submitted to the national regulator
- Licenses are granted to the winning bids
When the original legislation was passed and talks were first held about the potential of Japanese casino resorts, ambitions and projections were high. It was estimated that Japan could even beat the casinos of Macau, with a $40 billion market revenue per year, if the full market potential would be released. That is, nearly $10 billion more than the current Macau gross gaming revenue. Now, with renewed interest and perhaps a push from the ongoing Osaka MGM project, Japan is once again a massive prospect in the Asian gambling scene.
Original Law and Gaming Legislation
Japan has strict rules on gambling, and nearly all forms of real money games are banned by the Criminal Code. There are a few exceptions, and even the popular Japanese game of Pachinko, is legal but sits tightly on the border of what is legal and what isn’t. Landbased casinos were not legal until the first Integrated Resort Promotion Law was passed in 2016, legalizing these developments in theory.
But it was in 2018, with the Integrated Resort Implementation Law, that Japan created a detailed structure to regulate these resorts. The Japan Casino Regulatory Commission handles the gaming aspect of the resort, and the laws around the casino floors themselves are quite strict. The goal is not to create Las Vegas “Sin City” style casinos with endless aisles of slots and high stakes table games. But for the majority of the focus to revolve around the accommodation, dining, entertainment venues, retail outlets, exhibitions and additional amenities or leisurely functions. Gambling is just an extra feature, and the projects should remain “tourism-focused” rather than provide nonstop gambling games.
Requirements for Operators and Players
Japan has serious potential, but before operators can taste any of it, they will have to bring the finances and comply with strict legislation to get a foot in the bidding. The construction and public welfare investments are significant; Osaka’s MGM Integrated Resort costs around 1.27 trillion Yen. The operators must comply with very strict AML and counter-terrorism financing laws, and they have a social responsibility to limit problem gambling. That means, strategies for exclusion programs and counseling support.
These resorts must be designed as practical resorts first, and gambling venues second. Hotel facilities, convention and exhibition centres, and entertainment or cultural facilities are a must. The casino floors are restricted to a small percentage of the given land – 3% of less of the entire territory.
The experience will also be quite controlled for local gamers. Japanese locals will have to pay 6,000 Yen per visit, and are limited to 3 visits a week and 10 per month. This is to make sure that locals do not spend too much time or money at the casinos. There won’t be such restrictions for international tourists.
This is not actually an uncommon practise at Asian landbased casinos. In Singapore and the Philippines, there are similar restrictions, and there are very few landbased casinos in Vietnam that allow locals to gamble. The laws are slowly shifting to allow locals to gamble, but the entry conditions and restrictions are put into place to curb gambling addiction among locals.
Potential Locations for Casino Resorts
Osaka won the previous bidding round back in 2018, and it wasn’t much of a surprise. The region was the front-runner to win the bidding because it had strong local support and a clear development plan. It also helped that the plan was tied to the Expo 2025 site, adding confidence in the prefecture’s potential.
Other bidders in 2018 were Nagasaki and Yokohama. There were plenty of other interested parties, but none submitted bids. It is not just a case of finding the right client, as local support, environmental concerns, tourist accessibility and funding issues also play a big part in the bidding procedure. Tourist hubs, proximity to international airports, and even locations that have cruise port traffic all have natural advantages here. For the next round of bidding, you can expect the likes of:
- Nagasaki
- Wakayama
- Yokohama
- Tokyo (Odaiba)
- Chiba
- Nagoya
- Tomakomai
- Kitakyushu
- Okinawa
To all consider IR projects. There are many districts with tourist infrastructure or with highly prospective economies that could benefit from the boost.
MGM Osaka Construction Progress
In the meantime, MGM Resorts International is still working on MGM Osaka, which will be built on Yumeshima in the Osaka Bay. It is expected to have 3 luxury hotels, shopping and entertainment facilities, and entertainment/convention centres to accommodate business or cultural events. The project is estimated to open in 2030, and the development cost will most likely exceed $8 billion.
The Yumeshima island, a man-made extension in the Osaka Bay, hosted Expo 2025. The location is already well established; it is not located downtown Osaka, but just 20 minutes away by car (traffic-permitting). And it is ideal for a resort to attract business delegations, luxury seeking holidayers, and traveling gamers alike. With the classic MGM luxurious VIP gaming experiences, high end retail stores, and the big attractions associated with the operator, the expectations for MGM Osaka are high.
Potential Parties Who Can Bid for Remaining Licenses
It wouldn’t be completely absurd to imagine MGM doubling up on its Osaka project and looking to take an early lead in the race for Japanese casino dominance. Not impossible, however, quite unlikely. No, the most likely candidates for the 2027 Japanese IR bidding would most likely be many of the same names that were associated with the first round of bidding.
- Wynn Resorts: Currently developing Wynn Al Marjan Island in the UAE, they own casinos in Macau and the US as well, and are known for their luxury VIP tourism.
- Melco Resorts & Entertainment: A big player in Manila (Philippines) and Macau, this operator opened the City of Dreams Mediterranean in Cyprus in 2023, one of Europe’s largest IRs.
- Las Vegas Sands: The operators that run Marina Bay Sands in Singapore have casino resorts in Macau and are one of the biggest Asian casino companies
- Genting Group: Operating the other Singapore resort, Resorts World Sentosa, Genting recently gained a downstate NY casino license, and has casinos in the UK, USA, Malaysia, and many Asian countries
- Hard Rock International: A relatively new player to the casino industry, they run the Seminole in Florida and many destinations across Latin America, North America and Europe. They also won a downstate NY license
- Mohegan Gaming & Entertainment: The company runs several resorts in the US, including Mohegan Sun in Connecticut, and could look to expand its brand in Asia
Austria AG, was among the bidders in the 2018 process, proposing a site in Nagasaki, but their bid was rejected back then. They are not among the most likely bidders for this time around. But neither are the likes of Caesars Entertainment – who may be looking at a takeover soon – or US-exclusive players like Boyd Gaming and Penn Entertainment.
As the opening of the bidding process draws closer, no doubt we will hear rumours and gossip about new players and potential entries. Japan, being one of the largest untapped markets, will soon become the talk of the Asian gambling scene.
