Japan’s second application round for integrated resort (IR) licences remains scheduled for 2027. However, limited interest from local governments is raising questions about how competitive the process will be.
The application window will run from May 6 to November 5, 2027. Two IR licences are still available after only one project was approved during the first round.
Only One Integrated Resort Approved
Japan originally planned to issue three IR licences, but only the MGM Osaka project has secured approval. The JPY1.51 trillion development is expected to open in 2030.
Industry observers say the outcome highlights the high regulatory and investment hurdles facing potential applicants. Furthermore, future projects are more likely to be located in regional cities rather than major metropolitan areas.
Limited Interest From Local Governments
So far, only Aichi and Hokkaido prefectures have publicly indicated interest in pursuing an IR.
Aichi has issued a request for proposals. Meanwhile, Hokkaido has released a draft policy framework without formally committing to an application. Most other prefectures and major cities have yet to announce their intentions.
Industry experts believe any local government that has not substantially begun preparations by September 2026 may struggle to complete the complex licensing process before the 2027 deadline.
Regional Projects Face Additional Challenges
Experts also point to Japan’s strict requirements for non-gaming facilities, including large-scale hotels and MICE infrastructure, as a challenge for regional developments.
Some believe greater flexibility in these requirements could encourage more investment, although any changes would require further government discussion.
Political considerations are also slowing progress, with many local governments reluctant to publicly support IR projects ahead of local elections.
Investors Seek Greater Clarity
Industry consultants say clearer guidance from the national government on funding structures and licensing expectations would help improve investor confidence.
With only one successful application in the first licensing round, potential investors have limited precedent to evaluate. As the 2027 application period approaches, experts believe stronger signals from both national and local authorities will be critical to attracting new bids for Japan’s remaining IR licences.
