MGM Resorts International announced that they are ready to spend between $5-$10 billion on building a hotel and casino in Japan. The announcement comes the day after that their main competitor Las Vegas Sand Corp also announced that they will be investing in the area if gambling resorts becomes legal.
MGM Resorts wants to own a minimum of 51% of a company, should they do partnerships with Japanese companies for casino projects in the country. Should Japan go ahead and legislate gambling it could make Japan the largest casino market in Asia next to Macau Union Gaming Group believes.
Sheldon Adelson, CEO of the Sands Corp, told the press yesterday that he is also willing to spend upwards of $10 billion to build a casino complex in Japan. Tokyo will be hosting the 2020 Olympics, which boosts expectations of gambling resorts becoming legal in the country.
“We will overinvest early on to ensure, as we have done everywhere else, that we have properties that are built to last and that would stand additional competition,” Murren told the press. The final investment amount depends on other factors, such as the gambling tax rate.
Union Gaming Group estimates that Japan's casino market can generate upwards of $10 billion in yearly revenue, only being smaller than Macau in such case. Macua had a $45.2 billion revenue in 2013, which is seven time more than Las Vegas had.