"Hard Rock intends to be a major contender among the bidders for the available IR licenses in Japan"

By the beginning of November 2016, Hard Rock International Inc. confirmed plans to make a “major investment” in Japan. “We can either play a lead role or partnership role,” Chief Executive Officer Hamish Dodds had said by that time in statements to the press only weeks before the Japanese parliament (Diet) finally approved the legalization of casinos, opening the way for billions of dollars of potential investment.

In an exclusive talk with Yogonet, Mr. Cheng —who spearheads the development of news business opportunities for Hard Rock in the Asia Pacific region—, analyzed the legalization of casinos in a country he considered “the jewel in the crown,” adding that "Hard Rock intends to be a major contender among the bidders for the available IR licenses."

How do you analyze the decision by Japan’s Parliament to finally approve the legalization of casinos?

It’s a combination of factors coming together. There has been renewed concerted efforts behind the scenes to air the IR (Integrated Resorts) bill in this fall Diet session with strong support from the main candidate locations; the latter particularly being Osaka and the Ishin-To party, which aspires to be the host of the 2025 World Expo at the same designated site of the IR in Osaka.

One of the main items on the agenda for the Diet session is the Trans-Pacific Partnership (TPP) ratification. However, US President-elect Donald Trump’s recent comments regarding the termination of the TPP means the future of the TPP is uncertain. If TPP is taken off the table this frees up time for Prime Minister Abe and the IR supporters to include the IR bill as a major item on the agenda.

By the beginning of November, Chief Executive Officer Hamish Dodds granted an interview in Tokyo saying Hard Rock Cafe International Inc. was interested in making a “major investment” in Japan. Could you elaborate on such plans? Do you have more details on the project?

Hard Rock intends to be a major contender among the bidders for the available IR licenses in Japan.

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We are prepared to submit a competitive multibillion-dollar investment bid that will be highly differentiated from the integrated resorts in Macau and Singapore

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When do you think the first venues will be in operation? Media reports say fresh legislation is yet needed to set out regulation and tax rates details. Do you think we should expect the new casinos to be ready for the 2020 Tokyo Olympics?

It is unlikely for IRs to be open in time for the 2020 Tokyo Olympics. The expected scale of the IR investments dictates a construction period of 4 years or more and the detailed IR Implementation Bill is not expected to be passed till end of 2017 or early 2018.

How important is it to expand the company's business into Japan?

Expanding in Asia is a key focus for the brand and the expansion is already underway with multiple new projects under development.

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Most notably, the first Hard Rock Hotel in Mainland China – Hard Rock Hotel Shenzhen – is slated to open in 2017, followed by openings in Haikou and Dalian, China

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This is in addition to other recently announced projects in the region, such as Hard Rock Hotel Desaru Coast, the brand’s second property in Malaysia.

Additionally, growth in Asia and specifically Japan is fueled by more than half of the Hard Rock International’s $4.5 billion revenue currently being derived from gaming business. Asia is the main growth market for the global gaming industry with Japan being the jewel in the crown. We can’t emphasize enough how important Japan is for Hard Rock and will dedicate our full resources to bring a Hard Rock integrated resort in Japan a reality.