Wynn Adopts a Prudent Approach Toward Japan, Avoiding Immediate Return Yet Maintaining Connectivity
Published on: May 7, 2025, 5:02am EST
Last updated on: May 7, 2025, 5:02am EST
AUTHOR: @etfgodfather
Financial News: Gaming, Business, Mergers, Acquisitions
Japan plots second go at casino license bids; Tokyo randomly tipped for casino hotel lineup
Wynn Resorts (NASDAQ: WYNN) ain't commitin' to any ol' Japan casino resort bid, at least not until the legal landscape clear up a bit.
Rumors are swirlin' that Japan might dish out another round of bids later this year for two gaming licenses, aiming to approve a duo of integrated resorts by end of '27. The chatter's centred on Hokkaido and Tokyo as possible host cities, with the latter being a global metropolis ripe for gaming action. But don't go thinkin' Wynn's gonna hop right back on that Japan bandwagon.
"We'll eye any gateway city where we can toss some cash," Wynn's CEO Craig Billigs said on their earnings call Tuesday, respondin' to a CBRE analyst's question. "Yeah, Japan's on the list, 'cause it fits the bill. But we gotta have the right deal, the right set-up."
Wynn's leader under Matt Maddox previously tried their luck in Japan casino land, but bailed in Aug '20, citing delays in the permit process. They still kept tabs on Japan, though.
Tokyo Might Not Be Enough to Score Wynn Back to Japan
Just whispers a-swirlin', but if Tokyo were to become home to an integrated resort, it'd likely trigger another casino showdown involving some of the world's casino titans. Whether Wynn's one of 'em's another story.
Back in '19, Wynn was one of seven operators that threw their hat in the ring for Osaka's request-for-concept (RFC) initiative, but ultimately decided on focusin' on Tokyo instead of stickin' around in Japan's third largest city. As gaming companies soon discovered, Japan's capital city isn't exactly keen on hostin' a casino hotel. This sent many of the companies packin' for Yokohama, including Wynn. However, locals there weren't exactly thrilled about a casino, which might've played a part in operators bailin' on their Japan plans.
Hokkaido Back in the Japan Casino Picture, but Wynn Ain't Prospectin' There
Hard Rock International, Mohegan Gaming and Entertainment (MGE), and Rush Street Japan were the other gaming companies that previously pegged Hokkaido as their destination, which hones almost 5.1 million folks and is Japan's northernmost prefecture. Wynn didn't express much interest in that region several years ago.
Billings commented that "We got plenty of development opportunities." Includin' Wynn Al Marjan Island in the UAE, and projects in Boston and an upcoming NYC casino bid in partnership with Related Cos. Wynn is pumped to put a competitive proposal on the table in NYC, but they ain't gonna go throwin' money at it, said the CEO.
So Wynn's got a ton of chances to keep their hands busy, and maybe they don't absolutely need to hop back on the Japan train.
"We got plenty of development opportunities. We'd only give Japan a second look if the deal was right," concluded Billings.
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Wynn Resorts is reconsidering a return to Japan's integrated resort (IR) market, contingent on favorable regulatory changes. The Japanese government is mulling over re-opening the bidding process for casino licenses, aiming to issue up to two new projects alongside the ongoing MGM Osaka development[1][2].
Wynn previously abandoned its Japan plans in 2020 due to concerns over the country's complex regulatory environment and limited ownership rights for foreign investors[1]. However, CEO Craig Billings recently expressed openness to re-entering the market under improved conditions[1][2].
The potential renewal of Wynn's interest coincides with Japan's efforts to speed up its casino industry, with possible host cities including Tokyo and Hokkaido[2][5]. Despite prior setbacks, Wynn appears poised to explore Japan again, with clearer regulations and enhanced legal protections[1][2].
- Wynn Resorts might re-enter Japan's integrated resort market, which is currently considering re-opening the bidding process, provided there are beneficial regulatory changes.
- Tokyo and Hokkaido are being considered as possible host cities for new integrated resorts in Japan, attracting attention from global gaming companies like Wynn Resorts.
- With multiple development opportunities available in other regions, Wynn Resorts would only consider a second chance in Japan if the proposed deals are advantageous.
