In a surprising turn of events, the Japanese government dealt a decisive blow to Nagasaki’s ambitions of becoming a casino hub, rejecting a proposed integrated resort (IR) at the picturesque Huis Ten Bosch seaside resort. The rejection, announced on Wednesday, stemmed from serious reservations regarding the financial viability of the ambitious project, raising questions about the region’s potential economic windfall.
The Dutch-themed Huis Ten Bosch seaside resort, was once envisioned as a future gaming haven that would attract 8.4 million visitors annually.
Osaka’s triumph and Nagasaki’s setback
While Osaka celebrated the green light for its groundbreaking integrated resort in April, Nagasaki has found itself facing uncertainty.
The Nagasaki project, vying to mirror the success of its Osaka counterpart, envisioned drawing 8.4 million visitors annually, with an anticipated economic injection of 330 billion yen.
However, despite a favorable reception for Osaka’s integrated casino resort set to grace Yumeshima, an artificial island in Osaka Bay, Nagasaki’s dreams have crumbled under the weight of financial instability.
Nagasaki’s casino aspirations
The Nagasaki government’s proposal to construct the integrated casino resort at Huis Ten Bosch faced a financial hurdle early on. With an initial investment plan of ￥438.3 billion, Credit Suisse’s collapse, a key player in the project fundraising, cast shadows over the project.
The Ministry of Land, Infrastructure, Transport and Tourism’s expert committee raised red flags, citing significant changes in the investor line-up and insufficient documentation guaranteeing financial commitments. Doubts over the investors’ track records in operating IRs and concerns about inadequate measures against gambling addiction and illegal activities added to the government’s decision to reject the plan.
Financial doubt cast over Huis Ten Bosch
In a parallel development, the committee underscored the unique circumstances surrounding Osaka’s integrated casino resort, set to open its doors in 2030 with an estimated economic impact of 1.14 trillion yen.
As Nagasaki’s aspirations waned, Osaka emerged as the sole flagbearer in the Japanese emerging market of integrated resorts, reshaping the dynamics of the nation’s casino ambitions.
Background of Osaka’s triumph
In April this year, Japan’s trajectory toward integrated resorts took a historic leap with the government’s approval of Osaka’s plan for the nation’s inaugural casino resort.
Set against the backdrop of the 2025 World Exposition in Osaka, Prime Minister Fumio Kishida hailed the casino’s potential as a tourism hub while highlighting the imperative need for robust measures against gambling addiction. The Osaka prefectural government expressed its commitment to making the integrated resort a catalyst for economic growth, not only in Osaka and Kansai but for the entire nation.
Economic prosperity vs. conservative society
The plan, featuring a large hotel, conference facilities, and gaming areas on Yumeshima, is slated for an opening between the fall and winter of 2029. While local concerns about addiction and crime persist, the Ministry of Land, Infrastructure, Transport and Tourism’s seven conditions aim to assuage fears, providing a framework for responsible casino operations.
Japan’s journey into the world of integrated casino resorts unfolds, blending the anticipation of economic prosperity with the careful navigation of societal concerns. While Osaka’s celebration echoes through the promise of a casino-laden future, the Nagasaki project reflects the ongoing ebb and flow in the nation’s quest for a balanced and responsible entrance into the world of integrated casinos.
Related topics:
Osaka welcomes MGM Resorts and Orix for Japan’s first casino (www.shipengpaper.com)
Meeting between Japan and Nevada gaming regulators (www.shipengpaper.com)
Japan announces its first casino – SigmaPlay
