Wynn Hesitates on Return to Japan, Balancing Caution with Opportunity
May 7, 2025, 05:02h.
Last updated on: May 7, 2025, 05:02h.
Todd Shriber @etfgodfather | Financial | Gaming Business | Mergers and Acquisitions
Billings suggests Wynn could return to Japan's casino game* Rumors swirl about a fresh Japanese casino license bidding round* Tokyo and Hokkaido potential candidates
Wynn Resorts (NASDAQ: WYNN) might be prepped to dive back into the Japanese casino scene following whispers of a potential second round of bidding for gaming licenses later this year.
Tidbits have been making the rounds suggesting that the Land of the Rising Sun could revive its casino resort bid process with dreams of approving a brace of integrated resorts by the end of 2027. Contenders for these prime spots in Japan's gaming scene could include Hokkaido or Tokyo. While Japan is an enticing location for a gambling den, Wynn, for one, ain't in a mad rush to get back in the game.
On a call with CBRE analyst John DeCree, CEO Craig Billings said, "We always keep an eye on any gateway city where we can toss some damn good capital around, and the Wynn brand goes off like a cannon. So, Japan's on our radar, but there are some structural issues in the ownership and licensing that we gotta squint at real close. If the setup's right, we're game."
Back in Matt Maddox's days, Wynn took a stab at landing a Japanese gaming license, but in August 2020, the operation tossed in the towel thanks to lingering delays in the approval process. At the time, Wynn stated it remained interested in Japan and planned to stay abreast of any developments there.
Tokyo Moments Away from Being Gambling Goldmine?
For now, all this talk about Japan is still just smoke and mirrors, but if Tokyo jumped on board the casino train, it'd likely trigger quite the competition, featuring some heavy hitters in the casino world. Still, whether Wynn gets on board remains to be seen.
In 2019, Wynn was part of a gang of seven operators that took part in Osaka's request-for-concept (RFC) push. However, Wynn ultimately opted to ditch Osaka in favor of focusing on Tokyo. As gaming companies soon realized, Tokyo may not have been the best choice for a gambling den.
That led Wynn and several competitors to shift their attention to Yokohama. But the residents of Japan's second-largest city were adamantly against a casino hotel move there - an opposition that may have been a factor in multiple operators eventually nixing their Japan plans.
Hokkaido could once more be in the running for a spot in Japan's casino family, but Wynn showed no interest in that region years ago. Hard Rock International, Mohegan Gaming and Entertainment (MGE), and Rush Street Japan were the gaming companies that had their eyes on Hokkaido, which is home to a smashing 5.1 million folks and is Japan's northernmost region.
Wynn's Already Got Plenty on its Plate
What's more, Wynn has a heap of projects brewing, suggesting it doesn't urgently need to dash back to Japan.
Billings said, "We have plenty of development opportunities. We have land stashed away in the UAE. We've got some prime real estate in Boston. We've got prime real estate in Las Vegas."
He also mentioned Thailand, calling it an "amazing potential market." On top of that, Wynn's teaming up with Related Cos. on a bid for a casino in New York City. Wynn plans to submit a fair offer there, but Billings made it clear the operation won't engage in a bidding war.
"We've got a boatload of development projects. We'd only give Japan another look-see if the setup was right," concluded Billings.
The Enrichment Data
- Wynn Resorts is reevaluating its involvement in Japan's integrated resort (IR) casino bidding process, considering potential regulatory improvements and increased transparency to ensure investor returns and asset ownership rights[2][3][4].
- Japan's Casino Regulatory Commission has hinted at reopening the IR license bidding process in 2025, aiming to approve new projects by 2027 alongside the in-progress MGM Osaka project[1][2][5].
- Wynn's CEO Craig Billings has signaled that the company is exploring other possible markets, including Thailand, but is facing comparable legislative challenges there[2][3][4].
- Historically, Wynn had expressed interest in Japan but ultimately abandoned its plans for Yokohama in 2020 over complex and restrictive ownership and licensing structures[2][3][4].
- In 2019, Wynn was a part of a coalition of seven operators participating in Osaka's request-for-concept (RFC) initiative, but the company eventually decided against moving forward[2][3][4].
- Hokkaido Prefecture is reemerging as a contender for Japan's casino market, but Wynn previously showed little enthusiasm for the region[2][3][4].
- Wynn Resorts now has a diverse portfolio of development projects globally, reducing the need for the company to rush back to Japan[2][3][4].
- The Asia Pacific gaming industry is observing potential developments in Japan, as Wynn Resorts might re-enter the market if structural issues in ownership and licensing are resolved, according to CEO Craig Billings.
- In light of speculation about a fresh bidding round for Japanese casino licenses later this year, commercial gaming businesses, like Wynn, are assessing opportunities in the Asia Pacific gaming industry, considering factors like finance, business growth, and investor returns.
- As Wynn Resorts weighs its options in the Asia Pacific gaming market, it also explores growth opportunities in other regions like the UAE, Boston, Las Vegas, Thailand, and New York City, ensuring a diverse business portfolio and efficient use of capital in the gaming industry.
