Japan’s Sasebo still mulling fresh IR push, mayor says decision needed by March: report

Japan’s Sasebo city is still considering the possibility of reviving its push for an integrated resort (IR) with casino, with the city’s mayor saying a decision on whether to pursue the opportunity should be reached by the end of the current fiscal year in March 2027. Daisuke Miyajima, mayor of Sasebo, in Nagasaki prefecture, said during a general question-and-answer session of the city council on Wednesday that the city had been gathering information and opinions from IR operators and industry experts, according to information reviewed by GGRAsia’s Japan correspondent. Regarding whether to participate in the next IR application window set by Japan’s national government, Mr Miyajima said: “The application period is approaching… I believe it is necessary to reach a conclusion at least by the end of the fiscal year.” Japan’s fiscal year ends on March 31, meaning Sasebo aims to decide its stance before the next IR application window opens on May 6, 2027. The application period runs until November 5 that year. Any formal application would, however, need to be submitted by the Nagasaki prefectural government. Under Japan’s IR framework, applications can be made by prefectures or ordinance-designated cities, in partnership with a selected private-sector operator. Sasebo was the proposed location for Nagasaki prefecture’s unsuccessful bid in Japan’s first round of IR applications. The JPY438.3-billion (US$2.85-billion currently) project was planned for land adjacent to the Huis Ten Bosch theme park, with Casinos Austria International Japan Inc as the private-sector partner. Japan’s national authorities decided in December 2023 not to approve the Nagasaki proposal, citing concerns regarding the certainty of the project’s funding arrangements. Momentum for another IR push in Sasebo has picked up in recent weeks. In late August, the Sasebo Chamber of Commerce and Industry submitted a written request to Mr Miyajima calling on the city to revive efforts to secure a casino resort. Interest in another IR bid has also emerged elsewhere in Nagasaki prefecture. A feasibility study group backed by the business community in Omura city held its first meeting earlier this month to examine the potential for an IR in the region. The group is said to be looking at the feasibility of developing an IR in a regional rather than metropolitan area, as well as possible changes to national rules governing the scale of core IR facilities. Nagasaki’s current governor, Ken Hirata, had taken a cautious position on the IR topic during his successful gubernatorial campaign earlier this year. Asked whether the prefecture should try again in the next application round, he said he neither agreed nor disagreed and suggested the prefecture should first “see what will happen in Osaka prefecture”. Japan has two IR licences still available from the maximum of three envisaged under the country’s casino liberalisation framework. The only project approved so far is the JPY1.51-trillion MGM Osaka, being developed by MGM Resorts International and Japan’s Orix Corp with other local partners. The casino resort is under construction and scheduled to open at the end of 2030. Industry observers previously told GGRAsia that potential applicants face a tight timetable for the 2027 round, given the complexity of preparing an IR District Development Plan and selecting and coordinating with a private-sector partner.