Nagasaki Casino Resort Initiative Goes Bust

Akihabara News (Tokyo) — One of the most carefully planned initiatives to bring a casino resort to a Japanese regional city has ended in failure as the central government declines to issue a license for the project to go forward.

The Japan Tourism Agency made the long-awaited announcement on December 27. The central government’s examination committee found that Nagasaki’s casino resort bid fell short of minimum requirements on two separate criteria.

First, the examination committee judged that the prefecture and the casino resort consortium had failed to present sufficient evidence that it could provide the estimated ¥438 billion (US$3.1 billion) that would be needed to construct and prepare the facility.

In this regard, the report noted that “there have been significant changes in the investors and lenders, some of whom have not provided objective documentation supporting the certainty of funding as required. Moreover, many of the letters are addressed to parties different from those originally intended.”

The second criteria by which the application was rejected was the examination committee’s concern that only Casinos Austria International (CAI) possesses actual experience managing casinos, and its degree of commitment to the project was found to be wanting.

“It is not possible to confirm the existence of companies with experience and expertise in the installation and operation of IR among the investors other than CAI. Regarding CAI, which possesses experience and expertise in the installation and operation of casino facilities, there is insufficient confirmation of its track record in the installation and operation of Integrated Resorts. Additionally, due to the very small investment ratio and the inadequate commitment level in the letters, it is difficult to assert the substantial involvement of CAI in the Integrated Resorts business.”

The conclusion was that “the committee’s opinion is that, in light of non-compliance with the requirements, it is suitable not to certify the plan in accordance with the basic policy.”

The advocates of the “Kyushu-Nagasaki Integrated Resort” are naturally deeply disappointed. They had put years of efforts into the initiative, and in fact, had gained more local public support for hosting a casino resort than any other part of Japan.

Nagasaki Governor Kengo Oishi issued a statement that read, in part: “We deeply regret the results of this examination, considering the support we have received from various stakeholders over the years. The plan was meticulously crafted by the prefecture and the Integrated Resort operators, drawing on the expertise and advice of financial institutions and specialized advisors with experience in numerous Integrated Resort projects worldwide. We were confident that it met the certification criteria and had provided sufficient explanations to the review committee. Therefore, the surprising examination results are particularly disheartening.”

Had it been approved, the casino resort at the Huis Ten Bosch theme park in Sasebo city was expected to become the nation’s first to open its doors, several years ahead of the larger Osaka casino resort on Yumeshima island. It would have included an international conference hall, exhibition hall facilities, a passenger terminal, multiple accommodation facilities (including a hotel with over 2,500 guest rooms), a medical mall, and a shopping mall.

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