The city of Osaka in Japan has reportedly been warned that it may not be able to fully open its envisioned integrated casino resort in time for the start of World Expo 2025 owing to the federal government’s slow progress in determining the basic policies on such venues.
According to a report from GGRAsia, this alert was issued yesterday by Las Vegas-headquartered management consulting firm Global Market Advisors LLC along with a caveat that it usually takes between 34 to 40 months to construct and completely furnish an integrated casino resort.
Japanese legislators ratified the Integrated Resort Implementation Bill in July to pave the way for the licensing of the nation’s first trio of large integrated casino resorts by as early as the end of next year. In order to be selected as the host for one of these three facilities, candidate cities are being required to team up with private-sector operators before submitting their finished joint proposals to Tokyo.
Osaka is currently one of the lead runners in this process and is reportedly already considering pitches from seven potential partners that include giant American firm MGM Resorts International as well as Hong Kong-based counterpart Melco Resorts and Entertainment Limited. The city of some 2.6 million inhabitants earlier detailed that it hopes to have finalized its plan by the beginning of 2020 and wants to be given permission to bring its Las Vegas-style venue to a 121-acre plot of land on Yumeshima Island.
However, before Japan’s third largest city can be selected and begin digging, the federal government must first set out a series of basic criteria and constitute a regulatory commission. GGRAsia reported that this process has been dragging on for several months with Global Market Advisors LLC declaring that it must now be completed by the second quarter of next year if Osaka has any prospect of opening its hoped-for facility in time for the start of the six-month World Expo 2025, which is due to get underway in the metropolis from early-May of 2025.
Reportedly read the warning from Global Market Advisors LLC…
“If there is not a process in place by the second quarter of 2020, it is unlikely that a full integrated resort would be open in time to meet the desires of Osaka for World Expo 2025.”
The consultancy moreover reportedly detailed that it had originally estimated that a regulatory commission for Japan’s coming three casinos would be in place by the end of the current legislative session on June 26. But, it subsequently declared that this process may now be further delayed due to ‘the upcoming elections that have been planned for the upper house of the Diet’.
Global Market Advisors LLC’s alert reportedly read…
“While it has not been confirmed that a double election would occur in July, there is also the potential that a snap election in the lower house could be held at the same time. While many reports have stated that this will delay the process up to a year, it will likely only be a small delay in the overall process to establish gaming regulations, which would create the commission and the subsequent regulations that will need to be made.”
The update from Global Market Advisors LLC moreover envisioned that it could take Osaka up to 64 months after winning a license to open its integrated casino resort.
The warning from Global Market Advisors LLC read…
“There are 67 months until the start of 2025. As such, licenses would have to be awarded within the next twelve months to have a chance at opening a complete integrated resort that is ready to go by 2025.”