Japan: Genting Singapore could win Yokohama IR bid, analysts say

Galaxy Entertainment has announced it will not participate in the RFP process for Yokohama’s IR bid.
Galaxy Entertainment has announced it will not participate in the RFP process for Yokohama’s IR bid.

After the withdrawal of Galaxy Entertainment, only four companies remain interested in developing an IR in Yokohama.

Japan.- Maybank Research has said it believes that Genting Singapore is well-positioned to win Yokohama’s IR bid.

Its chances of winning Yokohama’s tender increased after the withdrawal of Galaxy Entertainment.

Galaxy Entertainment announced that it had decided not to participate in the request-for-proposal (RFP) as the business climate had been “exacerbated by the Covid-19 pandemic.”

Apart from Genting Singapore, there are other three companies interested in developing an IR in Yokohama: Melco Resorts & Entertainment Limited, Sega Sammy Holdings and Shotoku.

According to analysts, the Yokohama IR development could generate a gross gaming revenue (GGR) of nearly US$7bn a year and US$2.7bn in net profit.

Yokohama Mayoral Elections could change IR plans

Although Genting Singapore has chances to win a Yokohama IR licence, Maybank Research warned the upcoming mayoral elections could change the climate.

According to local media, analysts said: “Efforts may come to nought if an anti-IR mayor is elected.”

Yokohama will hold mayoral elections on Sunday, August 22. Current pro-IR mayor Fumiko Hayashi has not yet announced whether she will run for a fourth term in office.

There are two anti-IR candidates: Masataka Ota and Akiko Fujimura.

Masataka Ota is 75 years old and a member of the Constitutional Democratic Party. He has been elected to the Yokohama City Council for 11 four-year periods since the 1970s.

Ota said: “If I become the mayor of Yokohama, the casino issue will disappear that very day. To put it plainly, I will not do casinos.”

Akiko Fujimura is the representative director of an animal welfare group. She supported current mayor Fumiko Hayashi in the 2017 election.

Fujimura said she will declare the immediate cancellation of the Yokohama IR project if she becomes mayor.

Current mayor Fumiko Hayashi has not yet decided if she will run for a fourth period but there is speculation that she may be considering not to run because of health reasons.

In this article:
Genting Singapore integrated resorts land-based casino