The casino operator Galaxy Ent decided to join forces with Société des Bains de Mer to obtain a license at the freshly legalised casino industry in Japan.
Japan.- Galaxy Entertainment Group (GEG) announced that the company teamed up with Société des Bains de Mer (SBM) to compete for a casin license in Japan. Earlier this month the operator announced its intentions to obtain one of the three licenses that the Asian country will offer.
President of Galaxy Entertainment Group Michael Mecca, said that they intend to capitalise on the Monte-Carlo brand SBM. “All of the entities of Monaco and the principality … are very enthusiastic about joining us and doing business in Japan,” he added. Five percent of SBM is currently owned by Galaxy, and approximately 40 percent of the former’s revenue for the first three quarters of the fiscal year came from gambling revenue. On the other hand, almost 90 percent of Galaxy Ent’s revenues came from gambling in 2016.
Even if the company is confident that it will obtain one of the licenses, it faces several competitors in the long run: Melco Crown, Genting, Las Vegas Sands, MGM and Hard Rock are among the companies that already expressed their desire to land a license in the country to operate their services. Deputy Chairman of Galaxy Entertainment Lui You Tung said earlier this month that the company studied the upcoming market and that they’re very confident that they will get a license to operate a gambling facility in either Osaka or Tokyo.
Credit-debt watcher Fitch Ratings sported that gambling jurisdictions across the Asia-Pacific region will not likely be affected by the future opening of multi-billion dollar casinos in Japan. Worries about casino cannibalisation in the region are apparently unfunded since the firm says it won’t be triggered.
Moreover, the country’s ruling Liberal Democratic Party (LDP) along with a coalition are planning the introduction of a new bill that is set to be focused on responsible gambling. Under the new bill Japan’s central government and local authorities would be forced to promote responsible gambling, and methods for casino resorts to prevent addiction are also being discussed.