Hokkaido Business Groups Push Prefecture To Target 2027 IR Bid

Eight business organizations in Japan’s Hokkaido prefecture plan to submit a formal request next Tuesday, September 8, asking the local governor to accelerate Hokkaido’s effort for an integrated resort with a casino so the prefecture can meet the next application window in 2027.

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The request will be addressed to Governor Naomichi Suzuki and includes the Hokkaido Economic Federation among the groups planning the submission. According to the Hokkaido Shimbun newspaper, this would be the first IR-related formal submission by the business community to the prefectural government since November 2019.

The prior submission occurred just before Governor Suzuki made the announcement that Hokkaido would not apply for the first round of applications for its national application process. September 8 also marks the first day of the 3rd regular meeting of the prefectural assembly of Hokkaido.

Concerns Over Timing

The business community has expressed concern that the governor and the prefecture might move too slowly on an IR initiative. The newspaper reported that the caution could be linked to factors including a gubernatorial election scheduled for the following spring.

Last month, the prefecture said 3 existing overseas casino operators and 12 domestic companies had replied to questionnaires it organised to gauge investor interest in Hokkaido as a casino-resort location.

Tomakomai, an industrial port city on Hokkaido’s south-central coast, has for some time been seen as a front-runner as the prefecture’s candidate location for an IR.

2027 Application Window Set

The window for a second round of applications is due to run from May 6, 2027, to November 5, 2027. Hokkaido’s business groups are therefore asking the prefecture to move quickly enough to prepare a bid within that timeframe.

The only Japanese IR approved so far is the under-construction JPY1.51 trillion (US$9.58 billion) MGM Osaka. The project is being developed by MGM Resorts International with local partners and is due to open at the end of 2030.

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Omura Bay IR Study Underway

In other IR-related news this week, Omura city in Nagasaki prefecture held the first meeting of The Omura Bay Green IR Feasibility Study Promotion Council on Wednesday. The group is examining the possibility of an IR in the area.

The study group will also explore the possibility of new entertainment options other than casinos, according to a review of materials by GGRAsia’s Japan correspondent. Omura’s mayor, Hirofumi Sonoda, who sits on the study group, said the council would discuss the feasibility of IRs in local areas rather than metropolitan areas and also new entertainment forms other than casinos.

The group aims to forge a basic concept for an IR in the region and to outline suggestions to the central government to rationalise certain rules under the Integrated Resort Act. The proposed changes would relate to the scale of facilities and are intended to make it easier to have IRs in local areas.

Omura Cannot Apply Directly

Omura by itself does not qualify to apply directly to the national authorities for an IR. That right is reserved either for prefectures or what are known as ordinance-level authorities.

Omura city is part of Nagasaki prefecture, which itself had an unsuccessful bid for an IR in the first round of applications that concluded in December 2023.

Hokkaido Groups Seek Faster Action

The Hokkaido business organizations’ planned request therefore asks the prefecture to speed up the IR work so it can meet the 2027 application window. The groups are concerned about delays and are seeking a formal commitment from the governor to pursue a bid within the available timeframe.

Hokkaido’s investor questionnaires and Tomakomai’s status as a candidate location provide background to the request. The business community’s submission will be made as the prefectural assembly begins its 3rd regular session. The 2027 window and the upcoming gubernatorial election are both relevant to the timing of any IR initiative.

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Source: GGR Asia