Melco International already has two offices in Japan – one in Osaka and the other in Tokyo – as it hopes to build up its brand recognition to secure a license for an integrated resort (IR). It has now added a third office, according to a filing with the Hong Kong Stock Exchange, to the mix and has set up shop in Yokohama, a city that has long been on the short list of potential candidates for Japan’s upcoming gambling market.
The company told the exchange, “Japan continues to be the group’s core focus. With offices in Tokyo and Osaka and an upcoming one in Yokohama along with a local [Japan] leadership team, the group is now fully engaged to explore local partnerships and to further build up our local presence.”
The move comes after Yokohama last month openly expressed its desire to see an IR. Its mayor, Fumiko Hayashi, stated, “We must look to Yokohama’s future, the 20 to 30 years ahead. I’ve come to the conclusion that in order to achieve growth and development, we need integrated resort (IR).”
Melco’s CEO and chairman, Lawrence Ho, sees Japan as the company’s future and is convinced that it will be able to score one of the three initial licenses once the country begins to move forward with the IR launch. However, issues with subsidiary Melco Resorts & Entertainment in Australia and elsewhere may throw a monkey wrench into the plans.
Nonetheless, Melco will push forward and Ho feels that the company is in a “strong position” to be selected as a gambling partner. It has already started drafting designs for its IR proposals and recently presented what a company IR may look like, which included characteristics that offered a “unique Japanese touch.”
The competition is going to begin to heat up as Japan’s gambling framework continues to take shape. There are a number of entities that are interested in becoming part of the landscape, including Las Vegas Sands and Galaxy Entertainment, while others who previously expressed interest are backing out. Most notably, Caesars Resorts decided to drop its interest as the company closes in on its merger with Eldorado Resorts.
