Japan’s plan to reopen bidding for new integrated resorts (IRs) in 2027 is already encountering significant hurdles, with concerns mounting over whether enough qualified bidders will step forward. Industry analysis suggests that high development costs and ongoing uncertainty around suitable locations could limit participation in the upcoming round.
High Costs Raise Doubts Over Strong Bidding Interest
According to Convergence Strategy Group co-founder Scott Fisher, the overall cost of developing and operating an IR in Japan is comparable to some of the most expensive markets in Asia. While revenue potential remains attractive enough for mid- to large-scale operators, the financial burden may discourage widespread participation.
As a result, expectations that the 2027 bidding window—scheduled between May and November—will attract multiple strong contenders are increasingly uncertain. At present, only two regions, Hokkaido and Aichi, have expressed interest, and both are still assessing feasibility.
Hokkaido Balances Tourism Potential with Environmental Constraints
Hokkaido remains an appealing option due to its established reputation as a winter tourism destination. Potential involvement from Hard Rock International further strengthens its profile.
However, its geographic distance from major urban centers presents a double-edged sword. While it reduces direct competition, it also limits access to a large local customer base and increases reliance on seasonal tourism.
Site selection remains a critical issue. The previously considered Tomakomai area raised environmental concerns linked to protected wildlife, delaying earlier participation. For the 2027 round, authorities are revisiting multiple options, including Kushiro and the Lake Akan area, though these locations may also face environmental scrutiny.
Aichi Evaluates Airport-Based Development
Meanwhile, Aichi is exploring a potential IR near Chubu Centrair Airport in Tokoname. While the location offers infrastructure advantages, several challenges remain unresolved.
A key factor is the delayed maglev rail project, which was initially expected to enhance connectivity with Tokyo and Osaka. With completion now pushed to the mid-2030s, the lack of high-speed transport in the early years could weaken the project’s appeal.
Additionally, the proposed site faces physical constraints, including limited space and possible height restrictions due to its proximity to the airport runway. Combined with the relatively modest tourism draw of nearby Nagoya, these factors may impact the site’s long-term viability.
Learning from Osaka’s First IR
Despite these challenges, operators may still find strategic value in participating in the 2027 round. By the time new projects materialize, the Osaka IR—developed with involvement from MGM Resorts International—is expected to be operational.
This provides second-wave bidders with a unique advantage: the ability to observe real customer behavior, evaluate regulatory impacts, and refine their own strategies based on proven market data. Such insights could help reduce risk and improve long-term project performance.
Limited Alternatives Keep Japan in Focus
Although barriers remain high, Japan continues to stand out as one of the few large-scale gaming markets still open to new development in Asia. Other regional opportunities face their own constraints, from regulatory uncertainty to market saturation.
Consequently, even with cost pressures and site challenges, Japan’s IR market retains strategic appeal. The key question now is not just where these projects will be built—but whether enough operators will ultimately decide that entering Japan is worth the investment.
