In a statement, Wynn Resorts Ltd. confirmed that it will continue to investigate other markets in Japan where it can apply for Integrated Resort development, following the announcement of its withdrawal from Yokohama.
Wynn has engaged in Integrated Resort in Japan
Wynn Resorts Ltd. confirmed that despite leaving the Yokohama Integrated Resort (IR) race in Japan, the company has not abandoned its ambition to be represented in one of the country's three upcoming projects.
In a statement on Tuesday, the company confirmed that it withdrew its offer in Yokohama, but remained committed to Japan as a whole and was in the process of investigating other entry points.
"Wynn Resorts continues to closely monitor the situation of integrated resorts in Japan and sees the country as a strong potential market."
- Wynn Resorts
In addition, the company argued that her "The positive drive for the development of IR in the country has not been weakened", which corresponds to its status as one of the largest players in the industry.
However, Wynn warned that the lack of clarity after COVID-19 has made it a bit more careful. The company also noted that at that time there was no clearly defined national framework for the project that merited a more aggressive move.
Auction in Yokohama
Yokohama is the second largest city in the country and one of the leaders of the first of three integrated resorts. An investment that many believe may be the most profitable opportunity for any gaming business.
Integrated centers will focus on a multi-layered experience with an emphasis on casino games, but also offer many other amenities including restaurants, convention centers, and various entertainment options for tourists and gamers.
Yokohama will begin accepting bids on Friday and will continue to do so until May 17, when the last entries are processed. Going forward, the prefecture's legislators will need to decide which partner is most appropriate before presenting it to the central government for official approval.
Any participant in integrated spa projects will first need to form a local alliance with the prefecture and then obtain the approval of the national government. Despite changes to the ruling party and additional difficulties with the pandemic, the government remains committed to completing the project.
Prime Minister Shinzo Abe, who had to step down, was replaced by another politician committed to the success of the project, Yoshihide Suga.
Development lags and release date
While many hope that the first integrated resort could open in 2025, it is more likely that the casinos will not start operating before 2026 or 2027, which has weakened investment appetites. However, companies like Wynn Resorts are far from abandoning the idea.
Rather, they are bidding their time and looking for a strong entry into a promising market, rather than accelerating unnecessarily. For his part, Wynn could potentially look at some other prefectures, other than Yokohama, that are looking to obtain a license to run this mega-billion-dollar project.
Potential types are Nagasaki, Osaka, and Wakayama. Meanwhile, Osaka appears to have partnered with MGM Resorts and a local company. Then there's Mohegan Gaming & Entertainment, another Las Vegas contender who is rumored to be trying to secure their entry into Nagasaki.
Even though Wynn Resorts has pulled out of Yokohama, many companies remain involved, including Galaxy Entertainment, Genting Singapore, and Melco Resorts & Entertainment, which are reportedly exploring opportunities to stay present.
Meanwhile, at home, WynnBet is recording good results. The company's betting division, WynnBet, secured entry into both Ohio and Iowa. In Japan, as well as in the United States, Wynn Resorts is far from growing.