The Las Vegas Sands Corp’s CEO said that a resort hosting casinos in Japan may cost up to $10b to build since the operator is looking to win operating rights in what is expected to become the second-biggest casino market in the entire world.
Sheldon Adelson, who is the chairman and chief of the Las Vegas Sands stated that it would be at least what they paid in Singapore, $6 billion (this included the land). However, it might be as much as $10 billion. He gave that statement on Tuesday at an investor conference, which was held in Tokyo. The meeting referred to the Marina Bay Sands property located in Singapore.
Japan decided to legalize casinos during the end of last year and is now drafting rules until December, on how to regulate this industry and choose operators as well as locations of the so-called “integrated resorts”. These are large-scale complexes that combine casinos, hotels as well as shopping.
Though the estimates of the potential size of Japan’s market vary, CLSA stated that just two resorts in large cities might generate a total of approximately $10 billion a year, which could grow to $25b with more locations.
There are major American Operators such as Wynn Resorts Ltd and MGM International that are fighting for the first license. Others that have shown interest are the Australian Melco Crown Entertainment Ltd and Galaxy Entertainment Corp Ltd.