US casino companies are doing everything they can to increase their revenue right now. As most already know, casinos are struggling to bring in players around the country. Many of these companies are now looking at overseas investment opportunities. Today, we’re going to look at what’s going on with Wynn Resorts in Japan.
Wynn Resorts is one of the biggest casino operators in the world. Unfortunately, it’s been having a difficult time finding success breaking into the newly-emerging Japanese casino market. Now is the perfect time to look at why this is.
Let’s get into it!
Japan’s Casino Plans Continue to Face Delays
For decades, Japan’s government banned virtually all forms of traditional gambling. Despite the clear demand, lawmakers here pushed against the regulation of this industry. Many felt it would end up leading to an increase in crime and gambling addiction.
As time went on, the revenue potential from this industry became too large to ignore. Government officials began looking at how to safely allow major gambling venues to begin operating. In mid-2019, news broke that Japan officially approved a bill to legalize casino-resorts in three different cities.
It was extremely surprising for casino operators around the world. Many of the top US casino officials immediately began looking at ways to break into this country. It didn’t take long for them to realize opening a casino here will be a lengthy process.
Japan’s leaders wanted to ensure that these casinos are opened in the safest way possible. Different cities around the country needed to bid for the rights to host one of these new integrated resorts. Hope was that casino licenses would be awarded by the summer of 2020.
That timetable has since been pushed back. The global pandemic has made this entire process significantly more difficult. Several casino companies have abandoned their plans to break into this country altogether.
We’re now starting to hear more about Wynn Resorts’ plans to enter the Japanese casino market.
Here’s What’s Happening With Wynn Resorts in Japan
As we just mentioned, many of the world’s biggest casino companies have been working hard to gain a casino license in Japan. It’s been two years since casinos were legalized here, yet no licenses have been awarded. This is becoming incredibly frustrating for the companies hoping to operate in the country.
Wynn Resorts was one of the first companies to push for a Japanese casino license. Unfortunately, it’s looking as if the Las Vegas-based casino company may be close to putting its plans to the side. New reports claim Wynn Resorts has just closed down its Yokohama office due to the delay in being awarded a casino license.
The company released an official statement to the media this week about the situation.
“The pandemic is having an unprecedented negative impact on integrated resort development, and resort companies such as Wynn are considering how we evolve our operations to align with a post-pandemic market,” the statement said. “Long-term, we remain interested in the Japan integrated resort market and will monitor the situation closely.”
The prospect of Wynn Resorts in Japan isn’t completely dead. For now, officials within this company simply want to step back and watch how things unfold. They may choose to focus more on improving revenue figures from their US gambling venues.
Las Vegas Sands and Caesars Entertainment have both pulled out of the race to obtain a casino license in Japan. Unless things begin to change soon, Wynn may do the same.
How are things looking over in Macau?
US Casino Revenue is Recovering Faster Than Macau’s
Nearly all US casinos were completely shut down this past March. It took months for many states to begin allowing their casinos to start operating again. Some have still not allowed casinos to reopen.
Most of the country’s biggest gambling destinations are now up and running again. All of the major casino-resorts on the Las Vegas Strip are accepting guests again. Unfortunately, revenue here is still significantly lower than it was a year ago.
Many felt that US casino companies would begin relying on their properties in Macau for revenue. This Chinese territory opened its casinos many months ago, yet revenue is still extraordinarily low here. It doesn’t appear this small city will be the saving grace many expected it to be.
It’s an incredibly unusual time for the land-based casino industry. Some fear that states will eventually be forced to shut down their gambling venues once again. That seems highly unlikely to happen in major gaming areas like Nevada.
We may see Wynn Resorts in Japan sometime soon. Like all other companies, it seems content to wait and see how things unfold before it commits to opening a casino in this country.
Do you think Wynn Resorts will ever open a casino in Japan? Let us know in the comments section below!