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Japan's casino plans uncertain after Las Vegas Sands decision to pullout

Japan's casino plans uncertain after Las Vegas Sands decision to pullout

When Japan legalized Casino and gambling in 2018, it hoped to receive good fortune in future. With world class name in the industry, it was supposed to be a golden age for the gambling. However, the onset of 2020 brought disaster to many countries, and people are still suffering from the havoc called COVID-19. And with the current decision of Las Vegas Sands to pull out its chips from the table has left the already established projects in doubt.

According to some analysts, the sudden decision of LA casino industry to take chips off the table will compel the other in industry to remain on low ground and prevent them from taking risks.

The CEO of consultancy International Casino Institute, Takashi Kiso, has said that, “The scale of the investment would considerably decrease, because Las Vegas Sands is the price leader of the industry. Their withdrawal means they judged Japan’s profitability would be low. Others will respond to this by reducing their budding price.”

The Chairman and CEO of LVS, Sheldon Adelson has given a statement that the company would spend $10 billion in Japan to develop an “integrated resort” which is basically a large entertainment complex centered on casino with hotels, restaurants and conference venues. But in rapid change of scenario, the Las Vegas Sands changed its mind.

Reasoning behind this was given Adelson in a statement which read, “The framework around the development of an IR has made our goals there unreachable. It is time for our company to focus our energy on other opportunities.”

Earlier, the LVS’s Singapore based casino the Marina Bay Sands, was considered to be the frontrunner for a resort concession in Yokohama, the huge port and cruise terminal near Tokyo. Apart from them, Hong-Kong based Melco Resorts & Entertainment, Galaxy Entertainment and U.S. based Wynn Resorts were the good contenders.

Because of the Coronavirus pandemic, LVS and other casino operators are dealing under huge pressure, which has led to their closure. With an uncertain future nonody knows what will happen next.