Boston, MA 04/10/2014 (wallstreetpr) – MGM Resorts International (NYSE:MGM) is a $12 billion casino operator. The company owns casino and hospitality facilities in the U.S. and Macau, the only place in China where gambling is legal.
Like many other international casino operators, the company is circling Japan for potentially huge investment opportunity. Its presence in Asia, mainly in China’s Macau region, is a success story and the company hopes that more investment opportunities in Asia will be able to significantly boost its growth.
It seems that having suffered the impact of the U.S economic slowdown, MGM Resorts International (NYSE:MGM) is keen on spreading to more markets such that it can always have locations making the difference when things are not upright in one market.
The company is currently boosting its U.S. operations to spread in more locations and upgrade its existing facilities. It has plans to construct a casino resort destination in Maryland’s Prince George’s County. According to MGM Resorts International (NYSE:MGM) CEO James Murren, the facility will lead to the creation of about 4,000 jobs in the county.
Facing Japan
Japan will host the 2020 Summer Olympic Games. Moreover, the country is already a thriving destination for tourists. An estimated 10 million tourists from around the world visited Japan in 2013. The government projects the number of international tourists to the country to reach 20 million in 2020 and soar to 30 million annually by 2030. For aggressive casino operators like MGM Resorts, that presents a perfect business opportunity.
However, the problem is that currently gambling is illegal in Japan, despite the country’s clear revenue opportunity as a gambling nation. There are currently considerations to legalize gambling in Japan, and in anticipation of the opening, MGM Resorts International (NYSE:MGM) and many other international casino operators are currently seeking partners in Japan.
To sum up the story
Gambling market in Japan could be worth $40 billion in revenue annually. Although that revenue amount is below the value of Macau, it is a big opportunity and MGM Resorts International (NYSE:MGM) is not leaving anything to chance to be in the market.
