One of the biggest US casino companies has announced that it’s no longer pursuing a casino in Japan. It’s surprising news, as Japan is expected to become one of the most lucrative casino markets in the world. The company claims that it is focused on expanding in the United States.
It makes sense for Caesars to focus on the US market. Now is the perfect time to look at why this company is staying out of Japan. We’ll also talk about which companies are still in the running for a casino license in this country.
Caesars Entertainment Set to Merge With Eldorado Resorts
Not long ago, Eldorado Resorts announced that it purchased Caesars Entertainment for $17 billion. It’s the largest merge ever made in the gambling industry. Eldorado will be taking control of Caesars’ properties around the world.
Many steps still need to be taken before this merger can be completed. Several state gambling regulators are getting involved to ensure that everything is done by the book. The SEC must also approve of the deal before the companies can officially combine.
Caesars is rumored to sell some of its properties before the deal is complete, as well. According to numerous reports, the company will put some of its Las Vegas Strip properties for sale. Several companies have already expressed interest in buying one of these Strip hotel-casinos.
Hope is that this deal is done by the end of 2020.
When Japan legalized casinos in July of 2018, Caesars announced that it was interested in opening a resort there. Now, the company is taking a turn. Officials at Caesars Entertainment claim they are no longer pursuing a Japanese casino license.
Caesars Removes Itself From Japanese Casino License Running
As we mentioned at the top of this page, Japan is expected to become one of the most lucrative casino markets in the world. Many of the top US casino companies are pushing to obtain a license here. Interestingly, Caesars is no longer one of them.
This company released a statement on Wednesday that explains their decision to stay outside of Japan. Brendan Bussmann, a partner at Global Market Advisors, gave his take on the news.
“Considering the current talk of the (Eldorado) merger, it’s not surprising,” he said. “To see a large American brand that has a global presence, that has a good shot of landing the license bow out, it’s disappointing … It’s a missed opportunity.”
Caesars is focusing entirely on its merge with Eldorado Resorts. The company needs to ensure that everything is prepared before this deal can go through. Of course, it’s still somewhat disappointing to see the company choosing not to enter Japan.
Other US casino companies have to be pleased. It’s still anyone’s guess which of these companies will be granted a license to operate here. Let’s look at which gaming companies are still working to enter the Japanese casino market.
Several Companies Still Looking to Enter Japan
Most gambling analysts predict that Japan will become one of the biggest casino destinations in the world. Only three integrated resorts will open here. Several cities including Osaka, Yokohama, and Tokyo are bidding for their rights to host one of these casino-resorts.
MGM Resorts International, Las Vegas Sands, and Wynn Resorts have all stated their intentions to open a Japanese casino. In order to obtain a gaming license here, these companies must receive approval from the government. No companies have been granted one of these licenses yet.
Las Vegas Sands seems the most likely to obtain one of these licenses. LVS has deep roots in Japan and has a proven track record of operating casinos overseas. This company already runs a highly successful casino-resort in Macau.
MGM Resorts International is also very likely to receive a Japanese casino license. This company secured a sponsorship with the MLB during the opening games in Tokyo. It’s already a well-known brand in Japan and also has shown that it can operate gaming venues outside of the United States.
Caesars Entertainment is no longer pursuing a casino in Japan. We’ll need to wait and see which of the companies we just mentioned obtain a license to operate here. Stay tuned for more updates over the next few months!