Caesars sees $5 bln Japan investment, talks with local partners

    Caesars Entertainment said a casino project in Japan would require investment of at least $5 billion and it has held talks with potential local partners.
    Caesar’s Chief Executive Officer, Gary Loveman, told Bloomberg in an interview that the company sees no problem in being able to raise the funds for a project.
    “You can typically finance a very substantial portion of that value through the debt market,” he said. Caesars “will have no trouble raising the finance for a world-class facility in Tokyo.”
    He said demand for casino debt is strong given the strong cash flow profile of the operators.
    Meanwhile, Caesar’s president for international development, Steven Tight, told the news agency that the company has had discussions about potential casino partnerships with companies including Fuji Television Network, Kajima Corp. and Mitsui Fudosan Co.
    Japan’s Prime Minister Shinzo Abe has said he will push for the passage of a bill to legalize casinos in the country in Fall. Though it may still face some opposition from smaller political parties, which have expressed concern about money laundering and the potential social impact.
    Analysts estimates for the size of the market have varied, though CLSA said it has the potential to generate revenue of as much as $40 billion a year by 2025.
    The potential has most of the world’s major casino companies lining up to bid for licenses, including both Las Vegas Sands and MGM Resorts, which have estimated an investment in the country at as much as $10 billion.