A Yokohama integrated resort would generate around US$7 billion in annual gross gaming revenues, accounting for 60% of all Japanese IR industry GGR and with locals account for more than 80%, according to a report from Maybank Research.
The report from Maybank analyst Samuel Yin Shao Yang, which also suggests that Genting Singapore appears well positioned to succeed in its bid to develop a Yokohama IR, follows the passing of the city’s submissions deadline on Monday. With Galaxy Entertainment Group having announced this week that it would not take part in Yokohama’s RFP, it is believed that four companies will now battle it out: Genting Singapore, Melco Resorts, Sega Sammy and Shotoku.
Noting that Genting Singapore, operator of Singapore’s Resorts World Sentosa, likely scores well against its rivals in key areas such as promoting tourism, management and financial ability, and responsible gambling initiatives, Yin believes a Yokohama IR would generate around US$2.7 billion in in net profit in its first full year of operations, adding “substantial earnings and valuation upside for Genting Singapore.”
The report goes further, estimating total GGR across three IRs nationally at around US$11.7 billion per annum of which Yokohama would contribute 60% (US$7 billion), Osaka or Wakayama 27% (US$3.2 billion) and Nagasaki 13% (US$1.5 billion).
In Yokohama, US$5.8 billion in annual GGR would be sourced from locals and US$1.2 billion from tourists.
Notably, Yin believes Genting Singapore is “better positioned than its competitors by miles” due to its strong track record in MICE, boosting tourism, financial stability and responsible gambling initiatives at its Singapore IR.
“Genting Singapore has divulged very little information on its Yokohama IR bid,” the report says. “Notwithstanding, our channel checks in Japan indicate to us that Genting Singapore is very actively pursuing its Yokohama IR bid and is better positioned to win the Yokohama IR RFP process than many of its competitors.”
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