Nagasaki aims to secure one of Japan’s integrated resorts, which promises significant economic benefits. However, the Ministry of Land, Infrastructure, Transport, and Tourism has rejected Nagasaki’s proposal due to concerns about its feasibility.
Kyushu Resorts Japan and Nagasaki prefecture must now reassess their plans or abandon their bid entirely. Government officials are uneasy about the financing arrangements outlined in the project proposal. They find the level of commitment and clarity regarding funding terms insufficient.
The panel evaluating the decision doubts whether the project can proceed due to concerns about funding and the capabilities of the chosen operating companies. Casinos Austria International (CAI) is the only participant with experience in such matters, but its investment is smaller compared to other, less experienced parties involved in the consortium.
Another concern is how the profits from the operational casino resort would be distributed among numerous investors, potentially leading to conflicting interests and neglecting measures to mitigate the negative impacts of casinos.
Nagasaki has the opportunity to revise its bid, but attracting the right investors and securing stronger commitments will be challenging. However, the recent setback may motivate overseas companies with experience and resources to pursue opportunities in Japan.
Meanwhile, Osaka’s construction progress continues steadily, positioning it well for its integrated resort project.
