Two American billionaires bet on two different Japanese cities, Tokyo and Osaka, for the nascent casino business. Once the government legalizes gambling, Japan could become the third largest gambling destination in the world, after Macau and the United States. According to the broker CLSA, the annual turnover could reach 40 billion dollars.
Lawmakers backing the gambling business are hoping to see the first bill this year and the first resort opening in 2020, when Tokyo hosts the Olympic Games.
In a race to see who finishes first, real estate mogul Neil Bluhm, 76, has his eye on a commercial district in Osaka, which lies south of the city, while gambling tycoon Sheldon Adelson, of four years older, bets on the Japanese capital. According to Forbes, Bluhm, who owns casinos in Pennsylvania, Chicago and near Niagara Falls, has a net worth of $2,6 billion.
Former lawyer and president of Rush Gaming believes Osaka, a sister city of Chicago, has a flexible local government and the infrastructure needed to become a gambling capital. Adelson is instead attracted by the population of Tokyo, which has 13,2 million inhabitants, many of whom are wealthy. CEO of Las Vegas Sands, which has a market value of 39 billion, Adelson is willing to invest 10 billion in Japan.
In a recent report, Morgan Stanley predicted that a $5 billion casino in Japan would offer a return of no more than 20% due to high construction costs in the country and difficulties in attracting enough VIP customers from China.
