Genting Singapore Ltd. is one of seven major operators competing for Japan’s highly sought-after casino licenses, and its strong balance sheet may prove decisive.
Maybank Kim Eng analyst Samuel Yin Shao Yang noted that Japanese regulators are expected to prioritize financial stability when evaluating bids. With Genting Singapore holding $3.14 billion in cash against $761.73 million in debt—leaving a net cash position of $2.38 billion—the company stands out in contrast to heavily indebted U.S. rivals.
At the end of the first quarter, Genting also reported $754.40 million in free cash flow. “Genting Singapore is huge in net cash,” Yang told The Edge Markets. “For that, the Japanese would probably prefer them.”
Debt a Weak Spot for U.S. Operators
Other contenders include Galaxy Entertainment, Las Vegas Sands, Melco Resorts, MGM Resorts, Wynn Resorts, and an Osaka-based local alliance. Sands carries $11.9 billion in debt, while MGM and Wynn owe $15 billion and $9.5 billion, respectively.
Japan’s approach may follow Singapore’s casino model, which has proven profitable for operators while keeping social risks like crime and corruption in check. That could play in Sands’ favor as operator of Marina Bay Sands—widely considered one of its most prized assets. Still, regulators may recall Sands’ pause on Macau’s Sands Cotai Central project during the 2009 financial crisis.
“Given that there may be another global financial crisis brewing with the ongoing trade war, the Japanese probably want to work with someone who is in a net cash position,” Yang said. “So, Genting will be in a favorable position.”
Japan’s Debt vs. Corporate Discipline
Japan’s possible preference for financially conservative casino operators contrasts with its own fiscal record. With debt equal to 250% of GDP, the country is one of the most indebted among major economies.
However, officials may be looking to mirror the financial discipline of Japanese corporations, which are among the world’s strongest free cash generators. The return on equity (ROE) for the Topix Index recently hit its highest levels in decades—a benchmark Japan could seek to emulate with its casino framework.
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