Sasebo Weighs New Japan Casino Resort Bid Ahead of 2027 Deadline

Japan’s Sasebo city is still considering whether it should revive efforts to develop an integrated resort, or IR, with a casino. Mayor Daisuke Miyajima said the city needs to reach a decision by the end of the current fiscal year in March 2027.

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Mr Miyajima made the remarks during a general question-and-answer session at the city council on Wednesday. According to information reviewed by GGRAsia’s Japan correspondent, the mayor said Sasebo had been gathering information and opinions from IR operators and industry experts.

The next application period for Japan’s integrated resort framework is getting closer. Mr Miyajima said the city must decide whether it will pursue the opportunity before the end of the fiscal year.

The Japanese government’s fiscal year ended on March 31. The target will help Sasebo to make its decision prior to the beginning of the next national IR application period that starts on May 6, 2027. The application period will be kept open up until November 5, 2027.

Nagasaki Prefecture Holds Application Authority

A formal IR application would need to be submitted by the Nagasaki prefectural government, rather than Sasebo city. Under Japan’s IR framework, prefectures or ordinance-designated cities can submit an application in partnership with a selected private-sector operator.

Sasebo was previously the proposed location for Nagasaki prefecture’s unsuccessful bid in Japan’s first round of IR applications. The planned project had a value of JPY438.3 billion, currently around US$2.85 billion.

The resort was proposed for land adjacent to the Huis Ten Bosch theme park. Casinos Austria International Japan Inc was selected as the private-sector partner for the development.

Japan’s national authorities decided not to approve the Nagasaki proposal in December 2023. The decision was made due to concerns regarding the certainty of the project’s funding arrangements.

New Interest Builds in Sasebo

Momentum for another IR effort in Sasebo has increased in recent weeks. In late August, the Sasebo Chamber of Commerce and Industry presented a written application to Mr Miyajima, requesting the revival of the city’s effort to get a casino resort.

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The letter from the chamber of commerce has become a part of the debate about the city’s participation in the application process. However, Sasebo has not yet made a final decision to proceed.

Interest in another IR project has also emerged elsewhere in Nagasaki prefecture. A feasibility study group supported by the business community in Omura city held its first meeting earlier this month.

The group is examining the potential for an IR in the region, including the feasibility of developing a resort outside a metropolitan area. It is also considering possible changes to national rules governing the size of core IR facilities.

Governor Takes Cautious Position

Nagasaki Governor Ken Hirata has taken a cautious position on the possibility of another IR bid. During his successful gubernatorial campaign earlier this year, he was asked whether the prefecture should apply again in the next round.

Mr Hirata said he neither agreed nor disagreed with the idea. He suggested that the prefecture should first observe developments in Osaka prefecture before making a decision.

Japan still has 2 IR licenses available under its casino liberalisation framework, which allows for a maximum of 3 casino resorts nationwide.

The only project approved so far is the JPY1.51 trillion MGM Osaka. The development is being built by MGM Resorts International, Japan’s Orix Corp, and other local partners.

The MGM Osaka casino resort is currently under construction and is scheduled to open at the end of 2030.

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Source: GGR Asia