Sega Sammy says to seek majority stake in Japan casino resort
11/05/2017 11:10
* Slot machine maker wants control of Japanese resort
* Holds 45 pct stake in South Korea resort
By Thomas Wilson
TOKYO, May 11 (Reuters) - Slot machine maker Sega Sammy
Holdings Inc 6460.T said on Thursday it would seek a majority
stake in any Japanese casino project, one of a few domestic
firms to detail plans for a sector already drawing intense
interest from global gambling companies.
Japan legalised casinos in December, attracting
international operators including Las Vegas Sands LVS.N ,
Galaxy Entertainment Corp GALE.BO and MGM Resorts
International MGM.N .
But few Japanese companies have spoken publicly about their
plans for the sector amid widespread public opposition to the
introduction of casinos.
"We definitely want to take a bigger stake in Japan - not
just the entertainment part, but the whole (casino) resort,"
President and Chief Operating Officer Haruki Satomi told
reporters on the sidelines of a conference in Tokyo.
"We hope (to take a majority stake). We are preparing for
that," he said.
Tokyo-based Sega Sammy holds a 45 percent stake in a resort
in South Korea, which opened last month, and provides
entertainment content. Paradise Co Ltd 034230.KQ , the
country's biggest casino operator, is the majority shareholder.
Foreign casinos operators are courting real estate,
construction and transportation firms in Japan to form operating
consortia, and have expressed flexibility as to the size of
their equity involvement.
Galaxy has said it would not insist on a majority stake.
Hard Rock Cafe International has also said it was seeking equity
of between 40 and 60 percent.
Japan is now preparing legislation, due by December, to lay
out rules on selecting hosts and operators for the casino
resorts. It is widely expected to grant licences to three
locations initially, with Osaka and Yokohama seen as
front-runners.
(Reporting by Thomas Wilson; Editing by Miral Fahmy)
((T.Wilson@thomsonreuters.com; 81-3-6441-1598; Reuters
Messaging: t.wilson.thomsonreuters.com@reuters.net))
Keywords: JAPAN CASINOS/SEGA SAMMY HLDG