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The gaming world was hit with a big surprise after Rhode Island-based Bally’s Corp. ($BALY) said it’s eyeing an expansion into the Japanese gaming market.
The company announced it wants to bring an integrated resort to the Japanese city of Fukuoka.
As of writing, shares of $BALY were trading at $30.68.
Are there already casinos in Japan?
Currently, Japanese gaming efforts revolve around three casino bids in Nagasaki, Osaka and Wakayama.
Thus far, MGM Resorts is the only company to bid in Osaka. Caesars Entertainment is part of a group trying to bring a world-class resort to Wakayama.
Although Fukuoka is not in the running for a casino license, Ballys said it would spend $3.9 billion on a gaming venue.
Christopher Jewett, VP at Bally’s, said:
“Fukuoka has tremendous potential as a host community for an integrated resort.”
Jewett continued:
“If this happens, Fukuoka has the potential to position itself as a strong candidate for selection. It is clear however that no proposal is possible without the string support of the many constituents in the communiy.”
Fukuoka is Japan’s sixth-largest city.
Bally’s is one of the largest casino operators in the US. The company has 14 casinos in 10 states, but this is the first time it has considered expanding overseas.
Potential roadblocks to this casino in Japan
As it stands, Fukuoka Mayor Soichiro Takashima said he’s not interested in a casino coming to the area.
But there is hope.
Japanese Prime Minister Fumio Kishida is supportive of the gaming industry as a way to increase tourism. Japan is already the world’s third-largest economy, and with the addition of casino gaming, it could provide lucrative dividends.
Casino resort bids must be submitted by April 28. Jewett is optimistic that after the government reviews the three casino proposals, it could open bids for other cities.
In January, shares of Bally’s jumped more than 20% after its biggest shareholder, Standard General LP, announced it planned to buy the remaining stock it doesn’t own for $38 a share. Standard General already owns a 21% stake in Bally’s.
The deal values Bally’s at roughly $2.07 billion, almost double the $3.9 billion it plans to spend in Japan.
Jewett did not mention how the company plans to raise capital for its international project.
