The attempt to launch Japan’s first casino is off to a shaky start as some banks might be having a change of mind in backing the project.
According to a Nikkei Asia report, the project is based in Osaka and will feature a hotel, casino, theater and international convention center. The development has an opening scheduled for the first half of 2030.
Financing is expected to come via a $4.1 billion syndicated loan, the largest of its kind in Japanese history. However, roughly 20 of the lenders that were expected to back this endeavor appear to be having second thoughts due to problems the casino industry faced during the Covid-19 pandemic and the growth of the online betting sector.
Also, there are environmental concerns at Yumeshima, the artificial island where the casino is slated for construction, and mitigation efforts could complicate the lending process. Within Osaka, there is growing concern among residents that the casino could exacerbate concerns over gambling addiction and public safety.
While no bank has turned its back on the project, some banks have pledged less to the endeavor than anticipated and one Japanese life insurance company that was expected to be a major participant opted to pass. The project’s backers are seeking support exclusively from Japanese financial services institutions.
https://asia.nikkei.com/Business/Finance/Japan-s-1st-casino-hits-new-snag-reluctant-lenders