The governor of Wakayama Prefecture in Japan has announced that the region may consider submitting a new bid for an integrated resort (IR) license. A previous attempt, led by Clairvest, was rejected in 2022.
Wakayama’s newly elected governor, Izumi Miyazaki, has expressed support for revisiting the idea of a casino resort in the prefecture.
“The prefecture will examine the possibility of launching a fresh bid for an integrated resort,” said Miyazaki, who took office on 2 June.
“In general, hosting an integrated resort (IR) in the prefecture is expected to bring positive economic effects,” said Wakayama Governor Izumi Miyazaki. “However, there are also concerns, such as the potential for gambling addiction, increased traffic congestion, and labor shortages in other sectors.”
Miyazaki, previously the deputy governor, assumed office following the sudden passing of former Governor Shuhei Kishimoto, who died of septic shock in April. Running as an independent, Miyazaki secured a decisive victory in the June 2 election, defeating Communist Party candidate Michiko Matsusaka by a margin of 5 to 1.
According to The Japan Times, Miyazaki received backing from several major political parties, including the Liberal Democratic Party, the Constitutional Democratic Party, the Democratic Party for the People, and Komeito.
Wakayama’s proposed integrated resort aims to establish a casino complex that would promote “extended-stay tourism that is internationally competitive and appealing.”
The envisioned project would include conference centers, entertainment and sports facilities, cultural attractions, and more—designed to enhance tourism, stimulate the local economy, and strengthen public finances.
Two out of three licences still up for grabs
Japan legalized integrated resorts (IRs) with casinos in 2018 as part of then-Prime Minister Shinzo Abe’s push to boost international tourism. The central government initially made three licenses available for the first phase of development.
Wakayama was the first prefecture to express interest. In 2021, it partnered with Toronto-based Clairvest Group to propose a JPY470 billion (approximately $4.3 billion) "floating city" resort spanning 569,000 square meters in Wakanoura Bay. US-based Caesars Entertainment was slated to operate the casino. However, in 2022, the Wakayama prefectural assembly rejected the plan in a 22–18 vote, citing unclear financing details.
Three other locations also submitted bids: Yokohama, Nagasaki, and Osaka. Yokohama withdrew in 2021 after electing a mayor opposed to casino development. Nagasaki teamed up with Casinos Austria, but its bid was ultimately rejected due to concerns over funding transparency.
In the end, the Japanese government approved just one IR license. MGM Osaka, a JPY1.3 trillion integrated resort, is currently under construction on Yumeshima Island in Osaka Bay. The project, a joint venture between US-based MGM Resorts and Japan’s Orix Corporation, is scheduled to open in 2030.
A fresh start, sans Covid complications
When Japan first legalized casinos, analysts projected annual revenues as high as JPY5.8 trillion. Those expectations were later revised downward to JPY3.6 trillion. However, the onset of the Covid-19 pandemic stalled momentum and forced many potential investors to retreat.
It wasn’t until December that the Japan Casino Regulatory Commission signaled plans to restart the application process. This began with the appointment of a new group of gaming commissioners.
The newly appointed chairman, Takafumi Sato, is a former prosecutor who played a key role in shaping Japan’s casino regulatory framework. He is joined by Junichi Kakimizu, former head of the National Tax College, and psychiatrist Michiko Watari, who was reappointed to the commission. They join existing members Hirofumi Kitamura, a former law enforcement official, and economics professor Keiko Ishikawa.
According to local media reports, the new application process is expected to reopen in 2026, with casino licenses likely to be awarded in 2027.
