Dynam may target small Japanese Casino Projects

 Japan's Pachinko Hall management company Dynamic Japan Holdings wants to enter the casino business, but it is likely to avoid competition in Japan's big cities, says Hiroyuki Asakawa, an analyst at Pisco.

"This is a realistic approach given the size of the company and the risks inherent in the casino business," the analyst added.

Tokyo-based Fisco provides financial investment support services for retail customers.

Hong Kong-based brokerage CLSA said in a February report that the Japanese government would likely approve two large resorts and small regional venues in major cities in the first phase of casino liberalization.

An industrial legalization bill is pending in the National Assembly. Japan's lower house cabinet committee began discussing the revitalization bill in June, but the parliament is currently on recess until the fall.

"A full discussion of the bill is likely to take place at this fall's extraordinary session of the National Assembly, but ultimately the bill is expected to become law," Mr. Asakawa said

The Japanese government last month confirmed plans to set up a new body to coordinate the work of other government agencies working to legalize casino resorts. We hope the move will speed up administrative processes and allow the opening of such a first stadium in time for the Tokyo Olympics.

Several local governments in Japan, including Hokkaido, Chiba, Kanagawa, Osaka, Nagasaki, Miyazaki, and Okinawa, have expressed interest in attracting integrated resorts.

"There are no Japanese companies with casino operations know-how, and several companies are trying to acquire those know-how, but this will take a considerable amount of time," the Pisco analyst said.

 Japanese lawmakers have made it clear that foreign casino operators are interested in participating in Japan's integrated resorts.

Las Vegas giants and Macau operators Galaxy Entertainment Group, Melco Crown Entertainment, and SJM Holdings have all expressed interest in the Japanese market.

Dynamic Japan has invested a total of $85 million in Macau-based casino services company Macau Legend Development Limited and "will be getting valuable know-how from the company," a Fisco analyst said.

Macao Legends, run by businessman David Chow Campai, operates the Babylon Casino and the Pharaoh Palace Casino at the landmark Macao Hotel under the license of SJM Holdings Limited.

Initial investments in integrated resorts could be more than 1 trillion yen ($9.8 billion) in the Tokyo metropolitan area, according to Mr. Asakawa.

As such, Japan's land competition in large cities is "heavy," he added

However, the Pachinko operator "is planning to avoid such large initial investments and decide to enter the casino business based on optimal utilization of land, capital and manpower," Asakawa said.

However, the analyst warns of many variables that are currently in flux, saying it is unpredictable whether Japan's casinos will "attract serious world gamblers like Las Vegas and Macau."

"If casino businesses are overregulated, they may not be competitive internationally," Mr. Asakawa said. "It would be wise to wait for the details and application of the expected law

before putting significant resources into the business," he added.

Dynamic Japan reported a 4.8% drop in revenue to $375 million for the quarter ended June 30 two weeks ago.  파워볼사이트