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Japan’s upcoming second round of applications for integrated resort licences remains on the calendar for 2027, but observers say investor enthusiasm may not match the first round as few local governments have publicly stepped forward. The window runs from May 6, 2027, to November 5, 2027, with 2 casino resort licenses still available.
Only One IR Approved So Far
Under Japan’s liberalisation process, 3 IR licenses were envisaged. So far, only 1 project has been approved: the JPY1.51 trillion MGM Osaka resort, scheduled to open in 2030. The fact that just 1 of the initial proposals advanced to approval has been taken as a sign of “high hurdles” facing investors.
Those hurdles include the likelihood that new IR sites will be in secondary cities rather than major metropolitan areas such as Tokyo. For potential operators, that raises questions about how to meet the substantial non-gaming investment requirements in locations that may have less immediate market pull.
Consultant Mike Tanji pointed out that, with only a year left before the next application period starts, hardly any local government authority seems interested in taking on the responsibility of hosting an IR. An anonymous source of expertise in this field also confirmed that such a scenario is likely to affect the amount of information available to investors, both local and foreign.
Aichi And Hokkaido Move First, Others Stay Quiet
At present, only Aichi and Hokkaido prefectures have publicly shown some interest. The prefecture of Aichi has made a request for proposals for a possible IR, whereas the prefecture of Hokkaido has issued a provisional version of its IR policy framework without making any formal commitment to make an application.
For investors, that leaves a narrow set of possible locations to evaluate, with other prefectures and ordinance-level cities yet to declare their intentions. The anonymous source said Japan’s licensing steps are exceptionally complex and require extensive preparation by local governments and commercial partners.
Based on practical experience, the source said any serious candidate community that has not substantially begun preparation by September 2026 is unlikely to complete all necessary work in time for the 2027 window.
Regional Scale Requirements And Political Dilemmas
Japanese scholar Toru Mihara pointed to unresolved issues linked to developing casino resorts in regional locations while still meeting Japan’s minimum-scale requirements for non-gaming facilities such as MICE space and hotel accommodation. He said the obligation to build fairly large MICE and hotel facilities may be difficult to justify in rural areas.
Mihara said that if those requirements were reconsidered in a more flexible way, it could encourage investors interested in regional IR projects. He noted, however, that such changes would need government debate and could take time.
The observers also said the lack of pro-IR public statements from metropolitan-area local authorities, with Tokyo a prominent example, may help explain the limited fanfare ahead of the 2027 process. Tokyo has repeatedly been highlighted by the investment community as a favoured IR location, but Mihara said no major cities have yet come forward. He added that if big cities such as Tokyo declared interest, it could mobilise the market more effectively.
Political timing is another factor. The anonymous source said IR development has polarised public opinion in Japan, and local governments often avoid revealing clear positions ahead of gubernatorial or mayoral elections. That caution creates a dilemma: politically, authorities are encouraged to move carefully, while operationally, the preparation period is increasingly limited.
Investor Confidence And The Need For Clear Signals
Tanji, chairman of Tokyo-based Gaming Capital Management Inc, said more clarity from national authorities on criteria for IR funding models and operational structures would help stimulate investor interest. He noted that the first application round provided only limited insight for other operators, given that just 1 candidate was approved.
Osaka prefecture and city are working with MGM Resorts International and Orix Corp on the MGM Osaka project. Nagasaki prefecture also applied in the first round but was told in December 2023 that its bid had not been accepted, with authorities citing doubts about the project’s financing.
The anonymous source said that even without public confirmation from major global casino operators, consistent communication from local governments to the international investment community will be essential for rebuilding confidence in Japan’s IR opportunity and driving investment discussions. With the 2027 window approaching, experts say the combination of complex requirements, tight timelines, and limited visible interest leaves both governments and investors facing a compressed schedule to turn intent into formal bids.
Source: GGR Asia
