Mohegan Gaming & Entertainment (MGE) has been put between a rock and a hard place as it competes to be the casino operator of an integrated resort (IR) in Nagasaki, Japan. Its local partner, Oshidori International Development, just withdrew itself from the partnership, with MGE now having to find a new one, and quickly. Oshidori is reportedly not at all pleased with how Nagasaki plans on overseeing its IR and doesn’t want to be any part of the operations.
MGE Loses Nagasaki IR Partner
At the end of this past January, MGE announced that it had partnered with Oshidori, a subsidiary of Hong Kong-listed Oshidori International Holdings, as it competed to be among the first to enter Japan’s IR market. Everything seemed to be running smoothly and, at the end of July, there were indications that everything was on track. However, everything suddenly changed at the end of last week when Oshidori announced that it was exiting the partnership.
The unexpected departure has nothing to do with MGE’s efforts; instead, it appears the company is unhappy with the way Nagasaki wants to run its IR project. According to the company’s announcement, Oshidori asserted, “Unless there are certain changes to the developmental and operational rules imposed by the Nagasaki Prefecture, and unless the RFP (request for proposal) process is conducted in an ethical manner, it is withdrawing from participating in the RFP for an IR in Nagasaki.”
Oshidori didn’t lay out what changes it wants to see or what issues it may have uncovered, but added, “The restrictive and unreasonable rules imposed by the Nagasaki Prefecture make it impossible for Oshidori to conduct business in a prudent and efficient manner. In addition, Oshidori has encountered several incidents that make it question whether there have been serious ethical irregularities in…