Fitch: Japan Could Generate $7bn in Gross Gaming Revenue
NEW YORK -- February 13, 2014
The potential Japanese casino legalization will be the most heavily followed
political process in the industry this year, while Korea and Taiwan also
consider gaming liberalization measures, Fitch Ratings says. We estimate two
integrated resorts in Tokyo and Osaka could generate roughly $7 billion in
gross gaming revenues.
Japan has the potential to rival if not surpass Singapore as the second
largest gaming market in the APAC region. The country's pachinko industry
currently generates roughly $30 billion in annual revenues.
Gaming liberalization and developments in South Korea may occur sooner than in
Japan. Genting Singapore plc, subsidiary of Genting Berhad (both rated
A-/Stable) announced last week an agreement with Hong Kong-listed Landing
International Development Ltd for a $2.2 billion project on the South Korea
island of Jeju. South Korea restricts gaming from locals except for one casino
and may consider relaxing those restrictions while loosening other
requirements to encourage investment including integrated casino resorts.
These gaming liberalization measures would intensify the Asia-Pacific (APAC)
competitive landscape, posing risks and opportunities for all major global
players, including Genting, Crown Ltd (BBB/Stable), Las Vegas Sands
(BB+/Positive), Wynn (BB/Stable), and MGM (B/Positive).
Macau's next phase of development on the Cotai Strip will open in 2015-2017,
while the Philippines gaming market will continue to ramp up materially over
the next few years. Gaming exclusivity periods in Sydney, Australia and
Singapore expire toward the end of the decade, which could result in
additional supply. The Queensland, Australia government is also considering
additional licenses in Brisbane.
Fitch released today the second installment of Eye in the Sky: Gaming
Jurisdiction Surveillance Monitor - a series of reports that provide an
overview of the gaming regulatory and market environment within specific
jurisdictions. This installment focuses on the Asia-Pacific region, outlining
the regulatory, legislative and market environments in Macau, Singapore,
Australia, the Philippines, and Japan.
The reports provide:
-- a summary of gaming (or related) regulations within the jurisdiction
-- relevant revenue and market data
-- a breakdown of market participants and operators with exposure
-- notable risks and constraints
-- viewpoints from Fitch's Sovereign Finance analysts
-- historical and proposed legislation, including links to documents
-- an overview of the legislature and legislative process
-- links to helpful websites
-- major market demographics and visitation statistics
Additional information is available on www.fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit
market commentary page. The original article, which may include hyperlinks to
companies and current ratings, can be accessed at www.fitchratings.com. All
opinions expressed are those of Fitch Ratings.
Applicable Criteria and Related Research:
Eye in the Sky Series: Macau (Gaming Jurisdiction Surveillance Monitor)
Eye in the Sky Series: Singapore (Gaming Jurisdiction Surveillance Monitor)
Eye in the Sky Series: Australia (Gaming Jurisdiction Surveillance Monitor)
Eye in the Sky Series: Philippines (Gaming Jurisdiction Surveillance Monitor)
Eye in the Sky Series: Japan (Gaming Jurisdiction Surveillance Monitor)
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