Gaming operators are “generally well positioned” to undertake the investment to build new casinos in Japan, with Las Vegas Sands projected as the top pick, according to Fitch Ratings.
The comment comes following Japan’s casino bill passing in both the country’s houses of parliament last week. Three US-based operators - Wynn Resorts, MGM Resorts International and Las Vegas Sands - have expressed interest in the gaming business in the country.
“Global casino operators have used the last six years of US economic expansion and the early 2010s Macau boom to fortify their balance sheets,” said Fitch.
“Large-scale capital expenditure programmes are now at their tail ends and it would likely be at least two years before the projects in Japan are shovel-ready, allowing operators to build up more cash.’
The agency expects an implementation bill, which will spell out more details with respect to licensing, taxation and restrictions, to be introduced in 2017.
