The Japanese government has declined the proposal for a casino resort in Nagasaki Prefecture, expressing skepticism regarding the project’s financial viability. The decision marks a pivotal moment for the country’s nascent gambling industry, leaving Osaka as the solitary prefecture pursuing a similar endeavor within the nation.
Initially envisioned for development at Huis Ten Bosch, a resort in Sasebo, the Nagasaki IR (integrated resort) aimed for a 2027 launch. Last year, the prefecture submitted a plan to the Ministry of Land, Infrastructure, Transport, and Tourism, outlining a $3.10 billion (¥438.3 billion) investment, predominantly funded by financial institution loans.
However, financial uncertainties arose following the collapse of Credit Suisse, a crucial contributor to the project’s fundraising.
An advisory committee, composed of tourism and economics experts, expressed concerns about shifting investor partnerships and insufficiently documented financial assurances, leading to doubts about securing necessary funds.
They highlighted a lack of proven experience among investors in operating IRs and raised issues regarding measures addressing gambling addiction and illegal activities—common apprehensions surrounding casino initiatives.
This decision comes amidst ongoing deliberations over Japan’s casino landscape. The Osaka project, Japan’s maiden casino resort, earned approval earlier this year.
Anticipated to materialize on Yumeshima, an artificial island in Osaka Bay, it aims to attract 20 million visitors annually, generating substantial economic benefits totaling $8.1 billion (1.14 trillion yen) each year. The estimated cost for the Osaka IR is approximately $9 billion (1.27 trillion yen), targeting a launch around fall 2030.
The rejection of Nagasaki’s IR proposal underscores the scrutiny applied to casino ventures in Japan. Beyond mere economic prospects, the government evaluates projects based on potential international visitor influx, economic gains, and strategies addressing gambling-related concerns.
Original article: https://www.yogonet.com/international/noticias/2024/01/02/70246-japan-nagasaki-prefecture-39s-casino-resort-plan-rejected-over-funding-concerns
