Genting Singapore is more likely to win a coveted gaming license in Japan because casino gaming has been legalized in the country, according to Maybank Kim Eng Research.
It was made possible due to the responsible gaming experience on the group as well as its great net cash position. With the significant pile of S$3 billion of net cash, the financial position of Genting Malaysia is better than most of the debt-laden gaming operators in the US, and it can be better financed to have the development of integrated resorts, according to a report.
According to the research house, it was estimated by the experts that the gross gaming revenue (GGR) of Japan could be around US$6 billion to US$40 billion annually. When the casino legalization bill has been passed, Japan legalized casino gaming on last Friday.
The Integrated Resorts (IRs) Implementation Bill has been passed by the House of Councillors of Japanese Diet and last three bills should legalize the casino industry in Japan.
The concept of 3 IRs during the first liberalization stage is one of the best features of the bill. The tax rate on gaming is set to 30% of gross gaming revenue and casino floor area is set at 3 percent of total land area.
Japanese citizens will have to pay entry fee of 6000 yen in every 24 hours and they are limited to 3 visits every week and 10 visits per month, because of some social issues and concerns on gambling addiction.
The estimates, ‘buy’ call, and target price of S$1.46 have been maintained by Maybank Kim Eng Research on the counter. Genting Singapore is the operator and owner of one of two integrated casino resorts in the nation, Resorts World Sentosa and its largest shareholder is Genting Group Bhd with 52.5 percent stake.
According to the research house, Japan is going to set up around 300 more regulations and control commission, along with request for proposal for prefectures and operators which may submit joint bids.
Like the National Council on Problem Gambling, a Singapore-based NGO will also be assigned to manage the issues of responsible gambling.
It further added that RPF process was supposed to start in the middle of 2019 and licenses would be issued in the year 2020, when the first IR is supposed to open in the year 2025. The research house added, “Japanese lawmakers made same references on the legislative process to social safeguards in IRs.”
