Expert Says Additional Delays Threaten the IR Project in Nagasaki

A year has passed since Japanese prefectures Osaka and Nagasaki filed their applications with the national government for an integrated casino resort. The submission was completed right before the deadline set for the process. The process has gained traction at least for Osaka, which remained confident in the success of the integrated resort (IR) project, despite the delays.

However, this is not the case for Nagasaki, given that the application has gotten to a standstill. In light of the government’s request for additional details from the Nagasaki prefecture, further delays can be seen, which may threaten the project, an expert reveals.

As reported by IAG, professor Toru Mihara, who spoke at G2E Asia earlier this week, warned that more delays for the IR project in Nagasaki may have dire consequences. He predicted that additional delays pushed by the legislative standstill may ultimately impact the business consortium of the project.

“It may take months for a response. Maybe they eventually get certification. Well, that’s fine for Nagasaki but if this continues for months then the consortium of Nagasaki businesses will collapse.“

Professor Toru Mihara

The Government Requires More Clarity

The main issue with Nagasaki’s proposal involves clarity for funding the project as well as information regarding debtors and sponsors. Upon receiving the application, the government reviewed it and consequently asked the prefecture in Nagasaki to disclose additional details and be more clear about the project’s funding.

“The issue is unclear because of the lack of clarity in funding that Nagasaki has proposed. For example, under the current (submission) documents we don’t know who the sponsors are, we don’t know who is providing the debt. Nothing has been prepared for the central government, so the government doesn’t understand – who are the real investors, who are the real debtors,“

added professor Mihara

Professor Mihara explained that the lack of clarity is likely the main issue with the application. This is because, he said, the government is not aware of mandatory details which need to be disclosed in order for the project to be greenlighted. And while a response was requested from the Nagasaki prefecture, the process itself can take months, which creates a risk for the consortium of the project, according to the professor.

Mihara criticized the prefecture for not discussing the issue with the government. According to him, if the prefecture doesn’t take action, the project’s certification may be delayed further as the government can simply wait for the necessary information.