Genting Singapore and Melco Resorts & Entertainment have made it through to the final round of the qualification screening process for Yokohama’s Request for Proposal (RFP) to build an Integrated Resort casino at Yamashita Pier.
With Galaxy, SBM, Wynn and Las Vegas Sands all pulling out of the race over the last year, it meant that a third application from Shotoku Corp fell by the wayside.
Japan’s Sega Sammy Holdings is still in the race having joined the Genting Singapore consortium along with Kajima Corporation. Sega Sammy is one of the biggest gaming names in Japan as one of the largest manufacturers of pachinko machines. Having initially bid by itself it announced last week that it was taking a cautious approach to investing in Japan’s IRs and was happy to be a minority investor.
Melco meanwhile has teamed up with Japanese construction and civil engineering company Taisei Corporation.
Yokohama has set a deadline of June 11 for proposal documents and will announce its chosen operator to the central government by April 2022.
Melco’s Chairman and CEO, Lawrence Ho said: “Ever since Yokohama declared its candidacy, we have said that we are Yokohama first. Yokohama remains the most attractive IR destination.
“We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and commitment to employee development puts Melco in a strong position to help Yokohama realize the vision of developing a world-leading IR with a unique, Japanese touch.”
Maybank Research believes a Yokohama casino would clear up in Japan, generating US$7bn in GGR and taking a 60 per cent share of the Japanese casino market, due to its strength in the locals market as a key factor.
Analyst Samuel Yin Shao Yang said: “Genting Singapore is better positioned than its competitors by miles. Genting Singapore has divulged very little information on its Yokohama IR bid. Notwithstanding, our channel checks in Japan indicate to us that Genting Singapore is very actively pursuing its Yokohama IR bid and is better positioned to win the Yokohama IR RFP process than many of its competitors.”