Macau casino operator Galaxy Entertainment Group Ltd. is joining forces with Monaco’s Societe des Bains de Mer (SBM) to obtain a license for the Japanese market and operate casinos and hotels as a single entity there.
Galaxy, which owns 5% of SBM, relies on the Monaco brand to set foot in the Asia-Pacific market. However, there is fierce competition from players such as Las Vegas Sands Corps and MGM Resorts International,which have the same goal.
The Japanese gambling market is currently in the phase of regulation so selection of operators might take place in 2019 and casino resorts could open by 2023.
No details on the amount of the expected investment have been disclosed but Galaxy admitted that its $2.1 billion cash reserve will be sufficient venture capital to kick off a project.
According to brokerage CLSA, two casinos in large Japanese cities would be enough to generate more than $10 billion in revenue per year. The figure might reach $25 billion if an additional 10 casinos are established in smaller urban areas.