Nagasaki’s prefectural government looks set to abandon its dream of developing an integrated resort with a casino after revealing during a prefectural assembly committee session on Wednesday that it would not submit an administrative complaint review.
The prefectural government had been given until 27 March to submit its compliant review request after Japan’s central government in December rejected Nagasaki’s IR development plan, citing concerns around financing and the track record of investors. That decision left the MGM Resorts plan in Osaka as the only approved IR development in the country.
According to a report by The Asahi Shimbun, Nagasaki officials have opted not to utilize the administrative complaint review system in relation to the central government’s decision, admitting they could no longer pursue its former IR plan.
Specifically, they admitted that applying to the central government for a second time would be “extremely difficult” because it would have to start from scratch the process of selecting a site and an IR operator. Nagasaki had previously selected a plot of land alongside the Huis Ten Bosch theme park in Sasebo, with Casinos Austria named as its preferred partner. Both of these choices had raised eyebrows.
In rejecting Nagasaki’s bid in December, the Ministry of Land, Infrastructure, Transport and Tourism stated, “It is difficult to say there is sufficient evidence to support the certainty of financing”, adding there was a lack of “objective materials supporting the certainty of financing” from potential investors and financing parties.
It also pointed to an insufficient level of commitment in provided letters while noting that the parties scheduled to invest in and finance as of September 2023 had changed significantly since the time of application.
As such, “we cannot eliminate the concern that the parties scheduled to invest/finance may continue to change in the future,” the Ministry said.
IAG wrote a five-part special report in 2021 on Nagasaki’s bid, highlighting significant deficiencies in and challenges for the bid, and offering advice on how to address them. Ultimately, those deficiencies and challenges proved just too much for Nagasaki to overcome.
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