Yokohama IR bid soon to be announced

Mayor Fumiko Hayashi is expected to announce later this week that Yokohama will join the race for an IR bid in order to develop its own venue.

Japan.- The gaming industry will arrive in Japan sometime in the next few months. As regional governments push to get their own development, Yokohama may join the debate for an IR bid.

According to The Japan Times, Yokohama Mayor Fumiko Hayashi may announce the prefecture’s interest in developing an entertainment project. It would join a race with the governments of Osaka, Wakayama and Nagasaki, which have already announced their interest.

The city of Yokohama would build its IR at the 47-hectare Yamashita Wharf, by Yamashita Park. The authorities will submit a draft extra budget covering €2.2 million for the bidding process. 

Revenue forecasts

The casino industry in Japan is one of the most anticipated in the world. This isn’t only because of its recent legalisation but also because of the potential revenue that it could generate. Bernstein Research said in an August note that combined annual revenues for the first three integrated resorts (IRs) are likely to be between €8 billion and €10 billion.

With that range estimated by Bernstein, gross gaming revenue (GGR) would eventually be between €6.2 billion to €7.1 billion annually. However, “if only one metropolitan area is selected with two regional IRs, the revenue would be lower,” said the brokerage.

Analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu also talked about non-gaming revenue. “Non-gaming revenue – which in Macau represents less than 10% of gross revenues and in Singapore 25% – would be a higher percentage in Japan and could be in the €1.7 billion to €2.6 billion range. Thus, total gross revenues for two metropolitan-city IRs and one regional IR could reach €8 billion and €10 billion.”