Hard Rock not giving up on Hokkaido

Although Hokkaido Governor Naomichi Suzuki said his Japanese prefecture was withdrawing from the competition to become home to an integrated resort, Hard Rock Japan president Ado Machida isn’t throwing in the towel just yet.

“I really don’t understand the decision and I feel it’s a bit of a waste,” said Machida in an interview with Inside Asian Gaming. “An IR was expected to help drastically mitigate the problems of population decline, the declining birthrate, an ageing population and the tax decline that comes with that.”

Japan is another frontier in Hard Rock’s international expansion efforts, which also include participation in integrated resort competitions in Australia and Greece, among others. The company currently runs two Canadian gaming venues and one in the Dominican Republic.

Last week, Hard Rock rival MGE said it’s still evaluating its options in northern Asia and that it respects Suzuki’s call to pull Hokkaido out of the integrated resort fray. Rush Street Japan has yet to comment publicly on its Japan plans with its preferred prefecture being out of the running.

For its part, Hard Rock appears willing to stay the course with Hokkaido, although Machida noted it has been difficult to talk with Suzuki since his decision.

But we will continue our efforts for a future IR bid in Hokkaido,” said Machida. “Of course, we are an official partner of the soccer team Hokkaido Consadole Sapporo and we will continue our sponsorship of the Sapporo Snow Festival.”

That approach could pay dividends in the future, because Suzuki didn’t say the prefecture was permanently out of the running. Additionally, Japan’s initial round of gaming licence rewards will go to just three areas for just three venues, with Tokyo, Yokohama and Osaka widely viewed as the leading contenders.

Hard Rock was planning to spend $5bn in Hokkaido, roughly 10 times what the company spent to open its namesake casino on the Boardwalk in Atlantic City.

Unlike Yokohama, where many locals aren’t in favour of a gaming property, the idea of an integrated resort was viewed warmly in Hokkaido, indicating that the venture could be resuscitated down the road if the initial Japanese gaming properties prove successful.