Wynn Won’t Ignore Japan, But Won’t Hurry Back, Either

Count Wynn Resorts (NASDAQ: WYNN) among those taking a wait-and-see approach concerning a potential reevaluation of a Japanese casino resort proposal. 

On Tuesday, reports emerged that the nation might start a new bidding process for two gaming licenses later this year, aiming to approve two integrated resorts by the end of 2027. Speculation is focused on Hokkaido and Tokyo as possible locations to complement MGM Osaka in Japan's casino hotel offerings. Tokyo, a major global metropolitan area, is certainly an attractive spot for a gaming venue, but that doesn’t imply Wynn will hastily return to Japan.

"We’ll always look at any gateway city where meaningful capital can be deployed, and we think the Wynn brand resonates,” said CEO Craig Billigs in response to a question from CBRE analyst John DeCree on the operator’s earnings conference call Tuesday. “So Japan fits that bill. There’s structural challenges in the way that the licensure and ownership have been outlined in Japan. And so when we look at it, of course, but it’s got to be right, and the setup has to be right for us.”

Under Billings’ predecessor, Matt Maddox, Wynn sought a Japanese gaming license but ultimately dropped those plans in August 2020, citing holdups in the permitting process. At that time, the gaming company stated it remained interested in Japan and would keep up with new developments in that region. 

Tokyo Might Not Sufficiently Entice Wynn's Return to Japan 

At this point, it’s just conjecture, but if Tokyo decides to host an integrated resort, it would probably trigger a fresh wave of competition featuring some of the biggest casino operators globally. Whether Wynn is involved is a different matter. 

In 2019, Wynn was among seven operators that took part in Osaka’s request-for-concept (RFC) initiative, but the company chose not to proceed in Japan’s third-largest city, opting instead to concentrate its efforts on Tokyo. Gaming companies would soon realize that Japan's capital city was not a probable candidate for hosting a gaming venue. 

This led Wynn and a few competitors to focus on Yokohama. Nevertheless, residents in the nation's second-biggest city were vehemently against a casino hotel arriving in their area — opposition that might have influenced several operators to abandon their Japan initiatives. 

Hokkaido Prefecture has re-entered the Japan casino scene, although Wynn showed no interest in that area a few years back. Hard Rock International, Mohegan Gaming and Entertainment (MGE), and Rush Street Japan were the gaming firms that earlier indicated their interest in Hokkaido, which has a population of 5.1 million and is Japan's northernmost prefecture. 

Wynn Doesn't Specifically Require Japan 

The Las Vegas-based casino operator has numerous projects underway, including Wynn Al Marjan Island in the United Arab Emirates (UAE), suggesting it doesn’t have to rush back to Japan. 

“We have plenty of development opportunities,” said Billings on the conference call. “We have a land bank in the UAE. We have a land bank in Boston. We have a land bank in Las Vegas.”

He additionally referred to Thailand, calling the Southeast Asian country an “incredible potential market.” The firm is collaborating with Related Cos. on a casino proposal in New York City. Wynn is ready to present a reasonable offer there, but will not exceed the bid, stated the chief executive officer. 

“So we’ve got plenty of development opportunities. We would only look at Japan if the setup was right,” concluded Billings.