Yokohama Expected to Skip Japan's 2027 Casino Licensing Round

Japan's integrated resort (IR) expansion faces a significant setback as Yokohama, the nation's second-largest city, appears poised to withdraw from the 2027 casino licensing competition. The development comes as all seven candidates running in Yokohama's special mayoral election on October 18 have publicly opposed IR development in the city, effectively ending any realistic path for a casino bid during the upcoming application window.

Yokohama's absence represents a strategic loss for Japan's gaming expansion ambitions. Located roughly 20 miles south of Tokyo, the city has long been considered essential to attracting major global gaming operators to Japan's second licensing round. Industry observers have previously identified Yokohama as a key draw for multinational casino firms including Las Vegas Sands, Wynn Resorts, Caesars Entertainment, Genting, and Melco Resorts.

The city's opposition to gaming development is not new. Former Mayor Takeharu Yamanaka withdrew Yokohama's IR candidacy shortly after taking office in 2021, citing local concerns about gambling's societal impact. Yamanaka is mounting a campaign for reelection as one of seven candidates, and maintains his opposition to an IR. The other six mayoral contenders are equally opposed: civic group leader Sachiko Fujikawa previously participated in anti-IR activism; lawyer Atsumi Harasawa has publicly rejected an IR; corporate executive Atsushi Fukuyama and Yuka Asaka, deputy leader of the Japanese Communist Party's Kanagawa prefectural branch, have stated the concept does not align with their policy priorities. Most notably, former lawmaker Kazuma Nakatani has made a "zero casinos" pledge one of his six campaign priorities, alongside zero costs for childbirth, childcare, school lunches, and elderly care. Architect Riken Yamamoto has proposed alternative development plans for the Yamashita Pier location, including traditional Japanese wooden townhouses (machiyas).

Japan's IR licensing framework, authorized in 2018, permits up to three casino destinations nationwide. To date, only one license has been awarded: MGM Resorts operates MGM Osaka as a co-developer on Yumeshima Island, representing a JPY1.51 trillion (approximately US$9.5 billion) investment. The second bidding window, scheduled to commence in May 2027 and run through November, currently has only two confirmed applicants: Bally's Corporation and Galaxy Entertainment Group.

Yokohama's expected withdrawal raises questions about the viability of Japan's second licensing round. With limited expressed interest from major operators and the loss of Japan's second-largest city as a bidding location, regulators face uncertainty regarding whether sufficient competition and investment will materialize. The regulatory environment in Yokohama reflects broader Japanese concerns about gaming expansion, including social welfare considerations and community opposition that have shaped policy discussions since the IR framework's inception.