Recently, in an interview with Bloomberg, Ho, the owner of Melco, said that the company plans to invest $10 billion in Japanese gaming property. He added that the Japanese integrated resort would have the latest technology that fits the class of smart cities. Ho added that the company journey to establish gaming property in Japan started 15 years ago, and now, Melco is focusing on building an integrated resort in the city of Yokohama.
Casino.org reported that Melco plans to spend about $10 billion in Japanese integrated resort. The estimated cost have been floating around $10-15 billion, according to Fitch Ratings analysts. Las Vegas Sands (LVS) is another operator focusing on Yokohama resort, and their forecasted cost has exceeded $10 billion.
In the third quarterly reporting conference, Las Vegas Sands COO Rob Goldstein said that the company could spend between $10 to 12 billion for the Japanese gaming property. He added that at the end, the prize could prove to be low. Wall Street also projects that the Japanese gaming market could be worth $15 billion by the year 2025 and that maybe the reason why companies remain focused on the Japanese integrated resort race. In the first phase, the Japanese authority wants to issue three licenses to three cities.
Although operators are willing to sustain the $10 billion price for the Japanese integrated resort, the cost is high compared to other relatively classy gaming properties. For instance, the combined adjusted cost of Cosmopolitan, Las Vegas, and Bellagio is $9.74 billion.
Similarly, the cost of the Japanese integrated resort is five times that of Melco’s $2.10 billion City of Dream in Macau. If LSV could spend $10 billion in Japan, the cost will be twice the amount it spent on the Marina Bay Sands in Singapore, which is an inspiration to Japanese endeavors.