As expected, Genting Singapore and Melco Resorts & Entertainment (NASDAQ: MLCO) have officially advanced in Yokohama’s request for proposal (RFP) process, moving one step closer to securing one of Japan’s first three integrated resort (IR) licenses.
Japan’s second-largest city announced the results yesterday, confirming the two operators as the final contenders. The winner will partner with Yokohama in its bid to the federal government for a coveted gaming license.
Following Galaxy Entertainment Group’s withdrawal two weeks ago, the field narrowed to four. However, industry observers long viewed the competition as a two-horse race between Genting and Melco. Local firm Shotoku Corp. advanced but was ultimately rejected.
Strategic Partnerships Emerge
In a notable twist, Yokohama revealed Genting Singapore is teaming up with Sega Sammy Holdings and Kajima Corp. Sega Sammy, a leading pachinko machine maker and minority partner in a South Korean IR, had previously hinted at partnering with an international operator to better attract Chinese tourists. The alliance combines Genting’s regional gaming expertise with strong domestic partners.
Melco, meanwhile, is working alongside Japan-based Taisei Corporation.
Next Steps
Yokohama began pursuing a gaming license in 2019, initially attracting a crowded field. High costs and regulatory uncertainty prompted withdrawals from Las Vegas Sands (NYSE: LVS), Wynn Resorts (NASDAQ: WYNN), and Galaxy.
Both Genting and Melco must submit final proposals by June 11, after which Yokohama will select a partner to present to the federal government in April 2022. Other Japanese IR contenders include Nagasaki, Wakayama, and Osaka.
While officials are unlikely to reveal a frontrunner, analysts believe Genting holds the edge — a position strengthened by its partnership with Kajima and Sega Sammy.
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