The result of the Yokohama mayoral election has cast another shadow over Japan’s ambitions to build massive casino resorts, a drive that was already under strain due to the withdrawal of interest by key foreign players amid the Covid-19 pandemic.
Takeharu Yamanaka, a former professor at Yokohama City University, will become mayor on August 30. He said on Monday that he intended to make a declaration “at an early stage” that Yokohama, next to Tokyo, would not apply to join the bidding process to host a casino.
The central government has said it will award up to three cities a licence to host so-called integrated resorts, which combine hotels, casinos, entertainment complexes and conference centres.
Yamanaka, who was backed by opposition parties, campaigned on an anti-casino platform. His victory heralds the end of the city’s bid to host one of the gambling resorts, many observers say.
“It seems almost impossible for Yokohama to move forward with the election of Yamanaka-san,” Brendan Bussmann, a partner at gambling industry consultants Global Market Advisors, told Nikkei Asia.
“The anti-[integrated resort] movement is fully planted into the immediate future of Yokohama, as seen with the mayor-elect’s firm stance on the issue,” he added.
Yokohama earlier this year solicited business proposals from industry players. Two consortiums, one led by Genting Singapore and another by Hong Kong-based Melco Resorts & Entertainment, submitted plans to the city.
When Japan legalised casinos in 2018, many industry insiders believed the country had a chance of becoming the world’s second-biggest casino destination after Macau, with some parties announcing they would spend $10bn developing an integrated resort.
But the pandemic clouded the outlook for facilities designed to lure huge numbers of guests.
“We have seen tremendous progress over the past several years as cities like Osaka, Wakayama and Nagasaki continue to push forward with their development plans,” Bussmann added. “The pandemic has not helped matters, but this still remains a strong opportunity for investment and economic growth.”
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