Nagasaki’s casino integrated resort (IR) development plan is still under evaluation by the central government more than a year after it was submitted to the national authorities for approval. The city’s prefectural government remains hopeful that the IR proposal will get the green light, despite the challenges.

Investment Consortium Involved in Nagasaki IR Project Could Collapse

Among the main issues that may have caused the central government to delay its decision on Nagasaki’s IR proposal is the uncertainty surrounding its funding scheme. Credit Suisse AG, which was previously named by the Nagasaki prefecture as one of the financial arrangers for the project, was recently acquired by UBS Group AG.

Toru Mihara, Chairman of Japan’s National Council on Gaming Legislation, previously warned that if concerns about the funding scheme are not promptly addressed, and the proposal does not obtain approval from the central government within the next few months, the consortium of investors involved in the project could collapse. 

Nagasaki’s IR Plan Still Has a Chance

Osaka, which also submitted its IR plan to the national government in April 2022, already received certification from the Ministry of Land, Infrastructure, Transport, and Tourism. 

Osaka’s IR proposal was approved in April this year after securing 657.9 points during the assessment process, slightly above the required 600 points. But Nagasaki is still awaiting updates from the national authorities as to the status of its IR plan.

In a recent Q&A session of the Nagasaki prefectural assembly, officials said they believe the city’s IR proposal will eventually be approved.

Casino operators in Macau are now investing more in their non-gaming offerings as market competition intensifies. That’s according to Carlos Siu Lam, associate professor at Macao Polytechnic University’s Centre for Gaming and Tourism Studies. 

Increase in Entertainment Events 

Since COVID-19 restrictions were lifted in January 2023, Macau’s casino industry has seen an increase in non-gaming activities and events, including concerts and performances by various local and international artists held at arenas or banquet halls. 

In May, the Galaxy Arena at Galaxy Macau hosted two sold-out concerts by the South Korean girl group Blackpink. Galaxy Macau, located in Cotai, is owned by Galaxy Entertainment Group Ltd, one of the city’s six casino concessionaires. The company will organize more entertainment and cultural events in the future under strategic agreements with entertainment brands and entities. 

The other casino operators in Macau are also following a similar route in a bid to attract younger customers and families from China and other Asian nations, Mr. Siu said. 

Non-Gaming Offerings Will Bring More Revenue 

In his analysis, Mr. Siu stated that Macau’s casino concessionaires are now leaning towards enhancing their non-gaming offerings as the current consumer market has lower gambling spend. 

The move will still benefit the operators revenue-wise, according to Mr. Sui, as it can be a way to bring more customers to gaming venues, especially if entertainment perks are packaged with gambling.

Macau’s six gaming concessionaires already have exclusive foreigner-only gaming zones at their casino properties but they have yet to apply for a tax exemption under the city’s new gaming tax regime. This was confirmed by Macau’s Secretary for Economy and Finance Lei Wai Nong during a recent Legislative Assembly meeting.

Exclusive Gaming Zones Operating at 12 Macau Casinos

According to Secretary Lei, the exclusive gaming areas are now operational across a total of 12 casinos in the city. Each of the six casino operators may apply for up to a 5% levy exemption from gross gaming revenue (GGR) generated by overseas customers. However, none of the six concessionaires have so far applied for the incentive.

Mr. Lei said that the operators must submit the required documents to apply for the tax exemption and that the process would be handled with caution as it involves government revenue.

Tax Incentive Not Material to Sands China

None of the operators publicly disclosed whether they had availed of the tax rate exemption, though Sands China president Wilfred Wong Ying Wai indicated in May that they were considering applying for a tax reduction linked to the operation of their foreigner-only gaming zone. 

However, Robert Goldstein, chairman and CEO of Sands China and its parent company Las Vegas Sands Corp, recently stated that the incentive scheme does not have much significance to the company’s business as they are more focused on delivering quality service to their customers.

Gaming law experts have busted perceptions that the “command-and-control” model currently in effect in certain gaming markets, such as in Las Vegas, Nevada, is the best approach to gaming regulation. According to experts, no regulatory model is inherently superior, and other jurisdictions adopting a different approach can still achieve the same policy goals.

No Gold Standard in Gaming Regulation

Anthony Cabot from the University of Nevada, Las Vegas (UNLV) Boyd School of Law, Pedro Cortés of the Macau-based gaming law firm Rato, Ling, Lei & Cortes, and gaming lawyer António Lobo Vilela looked into the two main gaming regulatory systems: command-and-control (such as the model implemented in Nevada), and concession (such as the one in effect in Macau).  

In an article in the latest edition of the UNLV Gaming Law Journal, the three gaming law experts weighed in on whether there is a gold standard on how gaming is regulated. Each of them agrees that neither model is inherently superior as they both have their own advantages and disadvantages and have encountered successes and failures in their implementation.

Four Primary Principles in Gaming Regulation

The command-and-control system is widely considered the best model, but it is a misplaced idea, and clinging to it is “counterproductive”. Regardless of the model being used, good gaming regulation is gauged by its ability to meet four primary objectives: effectiveness, efficiency, equity, and political acceptability, the authors concluded.

Casino operations in the United Arab Emirates (UAE) will drive more real estate investors to the country. The “ultra-rich” would be particularly interested in buying properties if the country welcomes more casinos.  That’s according to a report from independent real estate consultancy firm Knight Frank.

East Asian Investors Turn Attention To Ras Al Khaimah

All eyes are on the UAE, as foundation construction of the Wynn Al Marjan Island, owned by US-based hotel and casino operator Wynn Resorts, began earlier this year. The integrated resort is set to open in 2027 and will become UAE’s first casino. 

In its latest destination report, Knight Frank featured Ras Al Khaimah (RAK) and the city’s real estate prospects after it was chosen as home to Wynn’s newest casino complex. The global consultancy firm surveyed 183 individuals from the ultra-rich group who have a combined net worth of US$3.2 billion and a spending power of US$2.5 billion.

According to the survey, ultra-rich investors, especially those from East Asia (60%) are now more likely to purchase property in RAK because of the casino development in the city. 

More Casinos Expected to Open in UAE

While no other emirate has announced plans to also open a casino, 42% of the respondents believe more casinos will launch elsewhere in the UAE (45% said those casinos could open in 1-2 years). A further 48% said they’d be more likely to purchase residential property in Dubai if a casino opened there.