Inside Asian Gaming

IAG JAPAN MAR 2020 84 Satomi, for his part, calculates that a Yokohama IR would attract, “Annual visitors of JPY 20 million, employment for 20,000 and tax revenue of JPY 80 billion (US$730 million).” PRACTICE RUN Sega Sammy’s obvious disadvantage in the Yokohama IR race is its lack of experience in building and operating the type of large-scale, luxury casino resorts exemplified by its rivals. How, for example, can they compete with Las Vegas Sands, whose portfolio includes the second biggest hotel in the world in The Venetian Las Vegas, seventh largest building in the world of any kind by floor area in The Venetian Macao, and the world’s most profitable casino (and global tourism icon) in Singapore’s Marina Bay Sands? But Sega Sammy has been nothing if not prepared. In July 2012, around four-and-a-half years before Japanese lawmakers kicked off the IR race in earnest by signing the Integrated Resorts Promotion Act into law in December 2016, the company signed a joint venture agreement with Korean casino operator Paradise Co to develop an integrated resort in Incheon, Korea. The resulting US$1.4 billion property, Paradise City, of which Sega Sammy holds a 45% stake, opened in 2017 with the Japanese firm making no secret of the fact that its involvement in the project is primarily for the purpose of learning how to develop, open and operate an integrated resort. In Yokohama, Satomi said, “We want to create a stay- type destination selected by world tourists, operated by Japanese with ample on-site experience,” indicating the company’s concept of utilizing the know-how it has cultivated in Korea, and particularly of attracting Japanese VIPs and the South Korean wealthy class. Sun Tzu’s Art of War states, “Know thy enemy and know thyself and you will not fear a hundred battles.” It is this strategy Sega Sammy is relying on to spring a JAPAN