UBS has recently announced the acquisition of its Swiss rival, Credit Suisse, for a sum of $3.25 billion. This may be perceived by some as a bailout; however, it is unlikely to impede Nagasaki’s progress in obtaining funding for its proposed casino-resort plans.
In a recent statement, Governor Kengo Oishi of Nagasaki noted that Credit Suisse was among the prospective financiers for the prefecture’s integrated resort project. At present, Nagasaki and Osaka are the only two Japanese prefectures with pending casino plans that have been submitted to the federal government. MGM Resorts International serves as the operator for the Osaka venture, and Casinos Austria is the gaming company partnered with Nagasaki.
Friday’s news of Credit Suisse’s collapse did not dampen Governor Oishi’s spirits, as he remarked that “the prefecture has gathered information” and the funding plan should remain unaffected.
Despite the fall of Credit Suisse, the prefecture of Nagasaki has other options for capital. Last September, Oishi mentioned Cantor Fitzgerald and CBRE as potential financiers for the integrated resort. It is also possible that other lenders may be enticed to contribute to the gaming industry in Japan. As of now, UBS has not disclosed its opinion on Credit Suisse’s role in Nagasaki.
Estimates suggest that a Nagasaki integrated resort may cost anywhere between $3 to $4 billion. Though past experiences with Japan’s casino industry may have caused doubts in potential investors, the Prime Minister Fumio Kishida has demonstrated his support for the gaming sector, with the aim of increasing tourism.
Despite the positive outlook, the licensing process is expected to take some time, with analysts predicting that the earliest gaming venues in Japan will be established between 2028 and 2030. In the event that the properties open earlier than expected and bring in high revenues, it is likely that other gaming companies will consider Japan venues. However, this is still a far-off prospect.
