Sega Sammy to jump into IR bidding debate

Sega Sammy Holdings is preparing its budget to get involved in the IR bidding discussion as it plans to reveal a partner before March 2020.

Japan.- The casino industry is soon to land in Japan and companies are getting ready to push for a cut of the pie. When the first three licences get issued, many operators and developers want to read their names and jump into the business, including Sega Sammy Holdings.

Sega Sammy Holdings’ President and COO Haruki Satomi revealed the company budgeted €24 million for Japan IR bid preparations. He stated that they’d likely reveal their consortium partners before March 2020.

Sega Sammy hopes to convince the government by pushing for an IR as a fully Japanese company. They want to beam a local vibe, to get the authorities to choose them over international companies coming from abroad.

IRs could generate billions

Depending on the location of the upcoming integrated resorts (IR) in Japan, the facilities could generate between €4.5 billion and €8 billion in gaming revenue every year. This is according to Fitch Ratings, which believes that the three IRs can generate successful numbers.

The rating agency said in its All In: Global Gaming Handbook that it projects Japan’s large-scale IRs in major metro areas to generate approximately €2.5 billion of gaming revenue each. Fitch Rating’s estimations for more remote locations are approximately €1.1 billion in gaming gross revenue (GGR).

“We would view a company winning a licence in a major metro area favourably in terms of increased diversification and having a sizable asset in a market with solid supply/demand dynamics and a robust regulatory framework,” it said. “However, the project will be expensive, placing pressure on the winning bidders’ credit metrics and liquidity through the long development cycle,” added Fitch Ratings.