The gaming industry in Japan is expected to reach US$6 to US$9 billion, according to Fitch Ratings.
Japan.- Fitch Rating’s All in: Global Gaming Handbook, which was published on Friday, revealed that the local gaming industry is expected to make gross gaming revenue (GGR) of US$6 to US$9 billion, the number variating on whether the country opens two or three integrated resorts initially.
Contrary to other estimations that said that Japan’s GGR could reach US$20 billion, Fitch believes that they fail to consider the limited footprint of the initial casinos relative to other jurisdictions that are more liberal in terms of gaming positions, like Macau or the US. “Given the likely physical restrictions, we do not think that estimates based on Japan’s GDP or loosely regulated pachinko industry are practical,” added Fitch.
Alex Bumazhny, senior director US Corporates, said that all eyes are on the Japanese gaming market: “For gaming operators, Japan provides an opportunity diversify their holdings and capitalise on the market’s solid supply/demand dynamics. However those benefits come at a cost – any Japanese project would likely be expensive and may pressure credit metrics.”