First IRs to open 2023 in Tokyo & Osaka: CLSA

Japan is likely to see two urban integrated resorts in Tokyo and Osaka at around 2023, says CLSA analysts in a note on Thursday.

The second phase of the IR build-out with up to 10 regional casinos will commence, at the earlier, from 2025 onwards  as the Japanese government seeks confirmation of the economic benefits from the initial two IRs, the brokerage added.

In its Thursday note, CLSA said it saw great potential in the Japan gaming market, with the market potentially generating up to US$25 billion in gaming revenue per year after the full build-out of two urban IRs and up to 10 regional casinos.

“We estimate each massive urban IR in the first phase to amass US$5 billion revenue. For the regional IRs in the second phase of build-out, we expect them to have a smaller footprint and hence a lower average revenue of US$1.5 billion,” said the brokerage.

With the IR Promotion Law approved in December 2016, the IR Implementation Law is expected be approved in late 2017. CLSA says it expects the award of concessions and license approval to happen around early-mid 2019, with construction of the first IRs to begin mid-2019.