Sands to pursue Tokyo and Yokohama IR bids, dismisses Osaka

Las Vegas Sands Corp. today announced it will not pursue the opportunity to develop an Integrated Resort in Osaka, Japan. Las Vegas Sands Chairman and CEO, Sheldon G. Adelson, said the company is focusing on development opportunities in the Japanese cities of Tokyo and Yokohama.

"For the past several years, we have engaged in a conversation with the Osaka government regarding the possibility of building a world-class Integrated Resort there. We thank the people and government there for their professionalism and wish them much success with Expo 2025 and the other initiatives they have planned," Adelson said.

"Consistent with our long-held strategy and our track record of success in achieving it, our company will drive organic growth by strongly reinvesting in our existing portfolio of properties in Macao, Singapore and Las Vegas, reward our shareholders through our dividend and share repurchase programs and target new development opportunities that allow us to maintain our industry-leading returns on invested capital – and we think an investment in Tokyo or Yokohama gives us the best opportunity to do exactly that," he concluded.

Yokohama, facing Tokyo Bay and located a short train ride from the capital, officially joined Thursday candidates such as Osaka, Nagasaki and Wakayama vying to host integrated resorts (IR) expected to attract more tourists and investment.

Japan is widely seen as a prize market for casino operators due to its affluent population of 128 million and proximity to Asia’s wealthy gamblers. The government is expected to allow casino resorts in three sites initially. Yokohama had long been undecided about a bid amid worries about addiction and crime.

“We must look to Yokohama’s future, the 20-30 years ahead,” Mayor Fumiko Hayashi told a news conference streamed on the city government’s website, announcing the bid, as reported by Reuters. “I’ve come to the conclusion that in order to achieve growth and development, we need IR.”

Prolonged discussions meant no resorts will be open in time for the Tokyo 2020 Olympics, with the government yet to pick hosts and operators. But new casino resorts are expected to help Japan maintain growth in tourism and investment after the Summer Games are over. Some analysts have said the casino market could be worth around $20 billion a year, or even more when opened in three cities.

Besides Las Vegas Sands, international gaming companies including Wynn Resorts, MGM Resorts International and Caesars Entertainment are eyeing the market, and may have to battle to win operating rights.