Las Vegas Sands Pull Out Of Japan IR Race

There were rumours but now it is official, one of the major favourites to win an Integrated Resort (IR) license in Japan has pulled out of the race. Las Vegas Sands has said they no longer want to apply for an IR even thou the companies Chairman Sheldon Adelson has connections there dating back more than 30 years.

It was muted in the casino industry that one of the three licenses available in Japan one would definitely go to Las Vegas Sands, now that is no longer the case it opens up possibilities to others. However with the changes and restriction Japanese government are now adding, the allure of an IR is becoming less and less for operators.

Analyst firm, Bernstein Research observed, “The announcement does not come as a complete surprise to us, as the Japan process has gotten bogged down by increasing government requirements and terms that were beginning to look less attractive.”

They focused on that “short term of licenses, high tax rate, growing constraints on local play, and financing arrangements” were among the key factors that would have cooled Sands’ previous ambitions to go big in Japan.

Sheldon Adelson said in his statement on the news: “My fondness for the Japanese culture and admiration for the country’s strength as a tourism destination goes back more than thirty years to the days when I was operating COMDEX shows in Japan and I’ve always wanted our company to have a development opportunity there,” the Chairman and Chief Executive Officer continued. “And while my positive feelings for Japan are undiminished, and I believe the country would benefit from the business and leisure tourism generated by an Integrated Resort, the framework around the development of an IR has made our goals there unreachable. We are grateful for all of the friendships we have formed and the strong relationships we have in Japan, but it is time for our company to focus our energy on other opportunities.”