Aichi Prefecture in Japan has officially commenced its Request for Proposals (RFP) process on Tuesday as it considers entering the race for an integrated resort (IR) license. This move signifies a renewed effort following the initial bidding process in 2023, where only two applications were submitted for the three available licenses. Ultimately, the Japanese government awarded MGM Resorts International and Orix Corporation the contract to develop an IR on Yumeshima Island in Osaka Bay, a $10.2 billion project expected to open in 2030. The previous application submitted by Casinos Austria and the Nagasaki Prefecture was denied due to financial concerns. With the next bidding period set to open in 2027, interested parties can submit their proposals between May 6 and November 5.
The path to establishing integrated resorts in Japan has been fraught with challenges. The push began in earnest with the 2016 passage of the Integration Resort Promotion Act, followed by 2018 legislation pinpointing specific resort areas. Global casino operators, such as Las Vegas Sands, Wynn Resorts, and Melco Resorts & Entertainment, saw significant potential in the market. However, progress was stymied by slow governmental processes and regulatory constraints, including strict gaming space restrictions, which were deemed burdensome by many operators. The COVID-19 pandemic further delayed development efforts.
Interest in a second round of bidding was rekindled in December with the formation of a new Casino Regulatory Commission. The backing of Japan’s recently elected Prime Minister, Sanae Takaichi, who supports the IR initiative—originally championed by former Prime Minister Shinzo Abe—has added momentum. The initiative aims to bolster tourism and attract international investment.
Aichi Prefecture has identified Chubu Centrair International Airport as the prospective site for its IR development. The area is praised for its industrial significance and vast tourism resources. Andrew Klebanow, a gaming analyst, described the location as nearly ideal, emphasizing its proximity to an international airport serving numerous regional and global destinations. He also noted the site’s easy access, with just an eight-minute walk from the airport’s baggage claim to the proposed casino location, and its potential to utilize existing infrastructure such as an underused convention center and hotel rooms.
The prefecture’s decision to pursue an IR now follows a prior hesitation due to COVID-19 complications. Governor Hideaki Omura has expressed that an integrated resort could help counteract population decline and enhance tourism appeal. He has underscored the importance of making the city attractive to both domestic and international visitors. The airport’s current capacity of 12 million passengers per year is expected to increase to 20 million by 2030.
Proposals submitted to Aichi will be evaluated based on a 1,000-point scale, which considers factors such as contributions to international tourism (450 points), economic and social impact (100 points), operational capability and stability (250 points), the effective use of casino revenue (50 points), and measures to mitigate any adverse effects from casino operations (150 points).
Looking ahead, the Aichi government will closely scrutinize proposals to ensure they align with the strategic goals of promoting tourism and economic vitality. The next steps involve potential applicants preparing to meet the outlined submission deadlines and criteria. The competitive landscape may also evolve as other regions and operators consider entering or adjusting their strategies within Japan’s nascent IR market.
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