|
|
|
|
|
|
|
|
|
|
|
|
|
|
"Huge and growing gaming market" Average Japanese player gamblers twice as much as US counterpart
Online gambling companies have been eyeing the Japanese market for some time, and this week the US media was carrying the results of a Deutschebank gaming survey that shows why. Although the survey was targeted on the physical gambling world, the statistics it showcased are of clear interest to online strategic planners.
|
|
|
|
|
|
The reports said that Japan could be the gaming industry's next frontier now that many development opportunities around the world are spoken for.
With the most slot-machine-like gaming devices of any country in the world, Japan is a huge and growing market. Brian Gordon, a partner in the Las Vegas-based financial consulting company Applied Analysis, said Japan has to be seen as a huge opportunity if only because of the size of the market and turnover in slotlike gaming devices.
Already, there are 5 million devices in Japan, compared with 830 000 in the United States, 240 000 in Russia and 200 000 in Australia, a recent Deutsche Bank study of Japan found.
That includes 1.9 million pachislot machines, devices that look like slots, but that involve some skill to play and pay off in prizes that can be converted to cash off-property.
It also includes 3.1 million pachinko machines, pinball-like machines that also pay off in prizes that are converted to cash off-property.
Casinos are illegal in Japan, although pachislot and pachinko parlors are allowed because of the skill or choice involved in playing the machines and because payoffs are not made in cash.
In addition to the number of machines, the average Japanese national gambles twice as much as the average American, although the country's population is only half that of the United States.
For gaming manufacturers, including Reno-based International Game Technology, Japan is already a huge market, more so because Japanese regulations require the frequent replacement of machines. Deutsche Bank analyst Marc Falcone said.
However, IGT Vice President of Marketing Ed Rogich said his company, through a partnership with Tokyo-based Sega Sammy Holdings, has a small share of the market, although a small share of such a huge market is considerable .
For example, IGT's international sales last year jumped 80 percent to $139.7 million, mainly thanks to the sale of 18 500 physical units in Japan.
Still, the Japanese market, because of its uncertainty and volatility, is not a major priority now for IGT, Rogich said.
For example, new regulations have been designed to make pachislot machines less like slots, but that has created uncertainty about which new machines will be approved.
In addition to the potential in the existing market, moves are afoot in Japan to legalise Las Vegas-style casino gambling.
Given strong operator interest in Asian gaming, Falcone said the opening of Japan should seriously interest U.S. operators, including Harrah's Entertainment, MGM Mirage, Las Vegas Sands Corp. and Wynn Resorts Ltd.
"We'd expect all the major international gaming operators to aggressively pursue any opportunity in Japan," Falcone said.
Michael Chen, president of Harrah's Asia Pacific Region, said his company sees Japan and the rest of Asia as an important market for future development.
"Over time we look forward to opportunities to extend our guest experiences to new markets like Japan. We believe that if and when legalized, casino gaming in Japan would be very successful (and) has all the characteristics necessary for a terrific market," he said.
|
|
|
|
| Back to News Menu... |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
 |
|
|
|
|