Today – Australian gambling tycoon and Melco Crown Entertainment co-chairman James Packer said it would cost a minimum of US$5 billion (S$6.2 billion) to develop a casino and resort complex in Japan should the government legalise casino gambling.
One of Australia’s richest men, MR Packer is visiting Japan as the country’s parliament is preparing to debate legalising casino gambling, a move that could create a prize market with a wealthy population and proximity to China.“I think realistically that (US$5 billion) would be the lowest possible number. I think the numbers will only go up from there, not down,” Mr Packer told reporters.
“I do not envisage that an integrated resort in either Tokyo or Osaka would be successful at anything under US$5 billion, and the cost for the successful applicant would probably be more than US$5 billion,” said Mr Packer, who also controls Australian casino group Crown Resorts.
Singapore’s Marina Bay Sands is the most expensive casino in Asia with a build cost of US$5.9 billion in 2010.
Proponents of Japanese casino liberalisation expect debate on the bill to start next month, and aim to pass it before the parliament session ends in June. They say casinos could be in operation by the time Tokyo stages the 2020 summer Olympic Games, helping to boost tourist spending.
Casino operators hope Japan will be the next big opportunity in Asia after the spectacular growth of Macau, the southern Chinese territory which has become the world’s gambling capital since its gaming market was liberalised in 2001.
Melco is one of several casino operators including Las Vegas Sands, MGM Resorts International and Wynn Resorts which have expressed interests in investing in Japanese gaming.
Mr Packer said Tokyo and Osaka were the “two most exciting” possible locations for his proposed casino, although he declined to identify which of Japan’s two mega-cities he preferred.
