Bloomberg – Las Vegas Sands Corp. (LVS) and MGM Resorts International (MGM) are scouting sites for casinos in Japan as Tokyo’s selection to host the 2020 Olympics boosts confidence a law legalizing gambling resorts in the capital will pass.
The International Olympic Committee’s decision fueled speculation Japan will approve casino gambling since the development would add hotel capacity and entertainment venues that could be used during the games. Casinos would also add jobs and draw about $10 billion in sales to bolster the economy.
Tokyo’s potential as a gambling market is also drawing the interest of Caesars Entertainment Corp. (CZR) and Melco Crown Entertainment Ltd. (MPEL) The push comes two years after casino legislation aimed at generating revenue to help rebuild after the 2011 tsunami faltered.
“We are starting to think through designs and master plans and partners we think would be most appropriate and really starting to invest more heavily in this effort,” Steven Tight, president for international development for Las Vegas-based Caesars, said in an e-mail. He declined to quantify the company’s investment or name potential partners.
Among the potential local partners are trading companies such as Mitsui & Co. (8031), Mitsubishi Corp. and Itochu Corp. and gaming machine makers Sega Sammy Holdings Inc. (6460) and Konami Corp. (9766) The trading companies have project-finance experience and real estate development connections, while the game makers have helped develop casino projects and technology outside of Japan.
