Genting BHD is getting a bid ready for a Japanese casino license. Genting is a Malaysian listed business conglomerate that is going to step into the financial war to gain a Japanese casino license. In a 2017 report, Genting stated they are looking forward to the ability to begin Japanese integrated resorts, which requires a bill to approve a specific number of casino licenses. The bill is expected to be passed by the Diet during this current session. Knowing that the Diet is seriously considering passing the bill, Genting has decided to prepare a bid.
Several of the global gaming operators are interested in Japan. Genting is planning on using Genting Singapore as an example for the bid, and they hope to break into the market. The filing that provided this information was provided Monday, April 9, 2018, before Bursa Malaysia.
Not quite a year ago, Genting prepared Samurai bonds as a way to raise money in the Singaporean market. The bonds went on offer in October of 2017. The subsidiary was able to raise $177 million, which was reported during the annual income report that also included the desire to enter the bidding for Japanese casino licenses.
Moody’s rated the Samurai Bonds at an A3/A-. The coupons are for a five-year investment. They are also talking about offering a three-year fixed bond. The funds earned from these bonds will go towards the bidding and building of a Japanese casino as long as the bill is passed.
Is Japan a Wise Move?
Despite Japanese residents being restricted to a certain number of casino visits per year, many companies still want the license available for a land-based casino.
Many of the casinos that are vying for a license in Japan feel the integrated casinos are worth the investment. It does not matter that Japanese residents are restricted as long as tourists will come to stay in the integrated casinos and enjoy gambling.
Genting also stated they are hoping to expand their business around the globe. Genting UK will try to regain market share. The company is hoping to reduce its short-term volatility with regards to premium player efforts.
US Genting is looking to implement a $400 million expansion for its Resorts World Casino New York City. The expansion will help keep Genting as a market leader in the area.
Genting Integrated Tourism Plan for Malaysia is also looking to expand with a theme park.