While Steve Wynn is recalibrating the odds, MGM Resorts International has a one-word answer to the Pacific Rim doldrums: Japan. The Land of the Rising Sun is estimated to be a potential casino bonanza of Macao-sized proportions, including drawing players from China for whom it is a more convenient destination (and one outside Beijing's scrutiny), and MGM has openly wooed Prime Minister Shinzo Abe's government. However, for casino gambling to take place in Japan, its constitution would have to be amended. To this end, Abe's Liberal Democratic Party has been hamstrung in recent years by its reliance on the Komeito Party, whose Buddhist orientation causes it to oppose gambling.
However, a recent election gave the Liberal Democrats an overwhelming majority in the upper house of the Japanese Diet, or parliament, and a smaller edge in the lower house. Now the question becomes one of how high a priority gambling halls are for the pro-casino Abe. Political scuttlebutt from Japan is that only two will be proposed – megaresorts in Tokyo and Osaka – and U.S. companies could only participate as junior partners to pachinko giants, like Universal Entertainment and Sega Sammy.
Domestically, MGM has not been subtle in its Pacific overtures, with installations of Japanese art on the Strip, a Japanese garden-inspired Spring exhibit in Bellagio's conservatory, and even a Kabuki spectacle on the Bellagio lagoon. The message of "We love Japan!" can hardly have gone unnoticed. However, given the number of times casino gambling has arisen as a political issue in Japan, only to be pushed onto the back burner, MGM has surely learned the virtues of patience.
In the meantime, the company is cultivating Asian-Americans as a secondary market. "With the growing Asian population [in Southern California], we expect greater numbers of visitors to whom we will continue to provide amazing guest service, experiences and memories," CEO Jim Murren told LA Dreams magazine. "We also hold many types of events in the Southern California area, such as small dinner parties or large banquet galas with a plethora of Asian entertainment."
So, if grand gestures like a Kabuki show fail to resonate in Japan, maybe they can yield dividends closer to home: "Our approach to Asian marketing encompasses the people rather than the country. We continue to see growth from the Southern California market and we look forward to continuing to cater to our existing customers as well as introducing a whole new group to the many amenities and experiences that MGM Resorts has to offer."
Since U.S. casino companies steer clear of the Philippines (where Steve Wynn was summarily banned for life for having described it as a corrupt nation), that leaves South Korea as yet untapped. A conglomerate headed by Mohegan Sun has been awarded a concession to develop a $5 billion casino megaresort at Incheon International Airport that will include a theme park, a private air terminal, and "the latest in indoor rock climbing, zip lining, an indoor rainforest, and an archaeology experience." Yup, all that and gambling too.
If that sounds tourist-oriented, it is, because South Koreans are barred from playing in all but one of the country's casinos, Kangwon Land, which holds that monopoly until 2025. That tourists-only policy clouds the future of U.S. investment in South Korean casinos. A Caesars Entertainment joint venture is widely held to be in doubt and none of the big Macao players have stepped forward. Even Lawrence Ho's Melco Entertainment chose the Vladivostok area of Siberia for its latest casino development over South Korea. After all, Koreans can gamble in Russia with more freedom than in their own country.
