KEPCO Collaborates with Vertical Aerospace

Akihabara News (Tokyo) — Kansai Electric Power Company (KEPCO) and Vertical Aerospace have formalized a commitment to advancing the field of advanced air mobility. This strategic collaboration aims to drive innovation in electric chargers, infrastructure, and charging standards, with a focus extending beyond Japan to key markets in Asia.

Vertical Aerospace, a manufacturer based in Bristol, United Kingdom, plans to unveil its VX4 flying car (eVTOL) at the 2025 World Expo in Osaka.

In this collaborative effort, Vertical Aerospace will develop specifications for eVTOL charging facilities. Simultaneously, KEPCO will play a crucial role in developing essential components such as DC fast chargers, battery cooling systems, and energy management systems based on these specifications.

Beyond the debut of eVTOLs at the World Expo, this partnership aims to expand throughout Japan and into other Asian countries.

Regulatory research is a crucial aspect of the agreement, involving a comprehensive exploration of specifications and regulations governing charging facilities for eVTOLs. The collaboration also encompasses a study on achieving carbon-neutral operation services for eVTOLs, emphasizing environmental sustainability. Furthermore, dedicated efforts will be directed towards enhancing social acceptance and awareness of advanced air mobility.

A similar agreement has recently been signed between KEPCO and Japanese eVTOL-maker SkyDrive.

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Sega Sammy Acquires Online Casino Company

Akihabara News (Tokyo) — In a significant strategic move, Sega Sammy Holdings and its subsidiary Sega Sammy Creation have revealed plans to acquire GAN Limited (GAN), which is a Nasdaq-listed Software as a Service provider for casino operators in the United States as well as an online gaming operator in Europe and South America.

This acquisition, set to be completed through a newly established special purpose company in Bermuda, has received support from GAN’s board of directors. However, the finalization of the deal is contingent upon approval from GAN shareholders, regulatory approvals in relevant jurisdictions, and the fulfillment of customary conditions.

The closing date is expected to come at the end of next year.

Sega Sammy, known for its ventures such as Paradise City in collaboration with South Korea’s Paradise Co. and contributions to casino gaming equipment, is looking to benefit from the rapidly expanding online gambling market in the United States. This market was valued at approximately US$12 billion last year, is expected to reach US$16.5 billion this year and a staggering US$27 billion in 2027.

The agreed-upon acquisition price is set at US$1.97 per share, with GAN shareholders receiving the consideration in cash. Following the merger, GAN will become a wholly-owned subsidiary of Sega Sammy Creation.

GAN’s market-leading online gaming technologies, featuring the Player Account Management System and Remote Gaming Server, are considered highly competitive in the US market. Sega Sammy anticipates that the synergy between GAN’s technology and its own customer base and content development capabilities will lead to expanded distribution and an increased customer reach.

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SkyDrive and KEPCO to Charge Up Flying Cars

Akihabara News (Tokyo) — SkyDrive has partnered with the Kansai Electric Power Company (KEPCO) to develop electric charging facilities for flying cars (eVTOLs); this collaboration aims to install and operate charging facilities in the Osaka region in preparation for the 2025 World Expo.

SkyDrive has been working to create an affordable eVTOL aircraft for daily mass transportation. As part of the Advanced Air Mobility Smart Mobility Expo Project, SkyDrive will showcase its main eVTOL aircraft model.

KEPCO, the major regional utility firm, is looking to enter the eVTOL charging infrastructure sector as a new opportunity to further expand its business.

The eVTOL charging facilities will be designed for rapid charging with high current and voltage, hoping to ensure efficient and seamless air taxi operations. The scalable designs might open the door to global applications.

The initial charging facilities are set to be installed at the Flight Test Facility by the end of the year, supporting the ongoing flight test program. Subsequently, another facility will be established at the eVTOL vertiport on Yumeshima island, where the expo is scheduled to be held.

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Osaka Government Officials Delete Casino Resort Emails

Akihabara News (Tokyo) — It has been revealed that officials of Osaka City deleted official emails regarding the planned casino resort after they had received information disclosure requests.

The content of the emails regarded the real estate appraisal for the casino resort, which is to be located on the manmade Yumeshima island in Osaka Bay.

Rather than respond appropriately to the information disclosure request, the officials instead deleted the emails from the network server and then claimed that they did not exist. This false response was provided even to the Osaka City Council.

A subsequent investigation, however, discovered that the emails and their attachments had been saved in a separate location.

The city has taken disciplinary action–a one-month pay cut–against two managers, and delivered reprimands to two others.

At a press conference, a city spokesperson stated that “although we couldn’t confirm that there was an intentional attempt to hide them, it did damage our credibility.”

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Subaru Air Mobility Concept

Akihabara News (Tokyo) — Subaru has entered the flying car (eVTOL) race with an attention-grabbing appearance at the Japan Mobility Show 2023, which is being held at Tokyo Big Sight until November 5.

The Subaru Air Mobility Concept signifies the Japanese automaker’s vision for the future of transportation. Its eVTOL is to be powered by an electric motor.

With dimensions of approximately 4.5 meters in width and 6 meters in length, it marks Subaru’s first venture into electric aviation technology.

Subaru has experience in the aviation sector, manufacturing helicopters and producing components for larger aircraft.

While the details regarding the commercialization of its eVTOL are pending, Subaru has now signaled its intention to become a new player in the developing advanced air mobility industry.

Separately, Subaru also presented an electric vehicle (EV) sports car at the exhibition, showcasing the brand’s broader dedication to innovation within the electric mobility landscape.

Subaru, which was founded in 1953, has been known for its commitment to all-wheel-drive technology.

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Police Move Toward Online Gambling Crackdown

Akihabara News (Tokyo) — Recent moves by the National Police Agency suggest that the long-rumored crackdown on online gambling may finally be underway.

The strongest move came late last month when police made unprecedented arrests of five alleged settlement agents for online casinos based overseas, in this case the Netherlands.

According to the information which police released to the media, the suspects made over US$14 million in commissions on hundreds of millions of dollars sent to the overseas online casino operators. In other words, they were the financial middlemen who collected deposits from Japanese gamblers and then ensured that the foreign company or companies were paid for the customers’ gambling losses.

The investigators said that about 42,000 names were registered in the customer data of the arrested agents. Also, a couple dozen gamblers were charged with simple gambling.

Earlier in September, a man in Chiba Prefecture was arrested for posting videos of himself on YouTube as he was engaged in online gambling. One of the main problems with enforcement is the fact this crime usually takes place quietly in peoples’ private homes, but in this case the man broadcast his lawbreaking to the public.

The National Police Agency is eager to dispel the widespread notion that online gambling is a legal “gray area.” In fact, since 2013 it has been explicitly designated as a crime–at least for those who physically operate within Japan. In other words, Japanese law does not apply to the foreign online casino operators, but it does apply to anyone inside Japan who assists these operations–such as the financial settlement agents–as well as ordinary people who utilize these gambling services (which are marketed and operated in Japanese language).

There are thought to be nearly 3 million Japanese who sometimes engage in illegal online gambling.

In order to catch some of them–or least some of those who facilitate online casinos–from this month the National Police Agency is expanding the scope of its anonymous crime reporting system to include gambling offenses.

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Suzuki Factory to Produce SkyDrive Flying Cars

Akihabara News (Tokyo) — A Suzuki-owned factory in Iwata city, Shizuoka Prefecture, will be used to produce up to one hundred units of the SkyDrive eVTOL (flying car). Production is expected to begin next spring.

In this connection, SkyDrive created at the beginning of September a wholly-owned production subsidiary with Nobuo Kishi as its first president. This subsidiary has been named Sky Works Inc.

Suzuki Motor Corporation and SkyDrive first announced their alliance in March last year, and they have been steadily tightening their cooperation.

The two companies have been collaborating in areas such as research and development, planning manufacturing systems, and the exploration of overseas markets, with an initial focus on India.

SkyDrive revealed that it is paying particular attention to areas in India where tourists visit historical buildings alongside rivers or by the sea.

Well in advance of production, SkyDrive has already collected preorders for hundreds of its forthcoming eVTOL. The latest announcement came last month when it was revealed that Solyu Company, an Korean aircraft leasing firm, put in a preorder for up to fifty units of the SkyDrive eVTOLs.

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Huis Ten Bosch Wants Decision on Casino Project

Akihabara News (Tokyo) — President Kotaro Takamura of the Huis Ten Bosch theme park in Sasebo city, Nagasaki Prefecture, has requested that the central government come to a quick decision on whether or not to grant a license to the major casino resort project that could be built next door.

“Our business strategy would be completely different depending on whether or not it will be built,” he observed. He added that “Japan’s tourism industry is at a major turning point.”

Takamura has just been brought in to rejuvenate Huis Ten Bosch, a theme park based on traditional Dutch culture, after the coronavirus downturn. He expressed the view that the park needs to expand its attractions in order to retain its status as a major tourist draw in western Japan.

Takamura previously worked at Tokyo Disney Resort, where he had a key role in expanding DisneySea attractions.

Last September, Huis Ten Bosch was acquired by PAG, one of Asia’s largest investment companies, after a long period owned by the travel company H.I.S. The purchase price was around ¥100 billion (US$675 million).

Nagasaki Prefecture and the Casinos Austria consortium submitted their proposal to build a ¥438 billion (US$3 billion) casino resort in April 2022, but eighteen months later the central government has yet to decide on whether or not to license it. Tokyo is reportedly concerned that the project may lack the financing to deliver the Integrated Resort on the scale which has been promised.

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Osaka Casino Resort Implementation Agreement

Akihabara News (Tokyo) — Osaka Prefecture and Osaka City have agreed with the business consortium led by MGM Resorts International and the Orix Corporation to implement the project to build a major casino resort on Yumeshima island.

“This is a significant moment for our company as we officially close the certification process and begin to focus on executing our vision, in partnership with Orix, to build a world-class integrated resort in Osaka,” said Bill Hornbuckle, president and CEO of MGM Resorts. “We remain passionately committed to this project and look forward to bringing Japan and Osaka best-in-class gaming, entertainment, dining, and retail experiences. Our vision is to bring MGM’s ‘wow’ DNA from Las Vegas to Osaka and build a resort that will be a source of great pride in the community.”

The project has now established an English and Japanese language website called Osaka IR KK, naming Ed Bowers (MGM) and Toyonori Takahashi (Orix) as its joint representatives. “IR” refers to the term “Integrated Resort,” which is used by the industry to denote a large casino resort packed with many non-gambling entertainment options and other amenities.

The Ministry of Land, Infrastructure, Transport and Tourism appears set to give its final approval for construction to begin as well.

The current timeline calls for preparatory work such as installing water and electricity next summer, commencing construction of the main facility in the spring of 2025, and a grand opening to the public in the second half of 2030.

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More Delay for Osaka Casino Resort

Akihabara News (Tokyo) — The planned casino resort on Osaka’s manmade Yumeshima island, once targeted for an early 2025 opening, has now slipped back to an anticipated launch in late 2030. Moreover, the price tag for the initiative also continues to rise.

Osaka Governor Hirofumi Yoshimura explained that “as a result of various procedures, the opening will be delayed for another year.” He added that “we expect no further postponements.”

The local authorities also indicated that, due to rising construction costs, related to both materials and workforce, the initial investment to create the resort is now estimated at 1.27 trillion yen (US$8.6 billion), up significantly from the previous estimate of 1.08 trillion yen (US$7.3 billion).

The taxpayers of Osaka prefecture and city will be on the hook for approximately 25.7 billion yen (US$170 million) to decontaminate and reinforce the soil on the 492,000 square meter plot of land upon which the resort will be located.

The Osaka project is so far the only Integrated Resort (IR) which has been licensed by the central government. A final decision on Nagasaki Prefecture’s application is still pending.

MGM Resorts and the Orix Corporation are both 40% partners in the Yumeshima IR development, with smaller Japanese companies owning the remainder.

Construction is expected to begin around spring 2025.

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Hyogo Prefecture Launches New Flying Car Project

Akihabara News (Tokyo) — AirX, in partnership with Mizushima Aero & Space Industry Cluster Study Group (MASC) and CTI Engineering, has been selected by Hyogo Prefecture and Kobe city to receive a subsidy related to flying cars (eVTOLs).

This initiative, named the “Demonstration Project Utilizing Flying Cars in the Osaka Bay Area: Creating Aerial Tourism,” has the goal of positioning Hyogo and Kobe as trailblazers in “aerial tourism” through the utilization of eVTOLs. Its central focus lay in rigorous technical verification, encompassing critical aspects such as safety of operations, environmental impact assessments, and a thorough validation of tourism-related services.

The size of the public subsidy to be granted was not immediately revealed.

The region is moving quickly toward the social integration of eVTOLs, with the 2025 World Expo in Osaka serving as a prominent milestone.

AirX aims to play a pivotal role in this endeavor, specializing in the procurement and sales of next-generation aircraft, including eVTOLs. Their offerings extend to helicopter sightseeing and charter services, complemented by the development of sophisticated systems for reservation management and flight operations.

This collaboration aims to revolutionize transportation and tourism while addressing modern urban challenges, underscoring a commitment to pioneering innovations in air mobility.

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Terra Drone Takes Majority Stake in Unifly

Akihabara News (Tokyo) — Terra Drone has acquired a majority stake in Unifly, a global leader in unmanned traffic management (UTM) technology.

Toru Tokushige, founder and CEO of Terra Drone, explained that “from the beginning of the drone industry, Terra Drone saw the immense potential of UTM. Our recent decision to acquire the majority shares in Unifly is a testament to our commitment to deepen this relationship. Unifly is focused on strengthening this partnership by using their advanced technology and experience to improve the safe and efficient use of drones in key areas like surveying, inspections, logistics, security, and disaster response, among others. This partnership brings us a significant step closer to realizing our vision.”

Terra Drone’s journey with Unifly began in 2016 when it took the lead investment position in Unifly’s Series A funding round. This partnership backed by the Flemish government through an investment fund, and subsequently by agencies of the German and Belgian governments as well.

With its latest acquisition, Terra Drone’s ownership share in Unifly has surged to 51%, underscoring its commitment to Unifly’s strategic direction. This move aligns with Terra Drone’s larger goal of seamlessly integrating drone and unmanned aerial mobility operations globally, thereby contributing to the development of a robust aerial infrastructure.

Terra Drone’s early investment in Unifly recognized the critical role of that digital infrastructure would play in ensuring the safety and efficiency of drone operations. Unifly’s strong partnerships with European air navigation service providers further solidified its standing. Today it is employed in at least eight countries.

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Marubeni Links Up with Lift Aircraft

Akihabara News (Tokyo) — Marubeni Corporation, a leading Japanese trading company, has entered into a strategic partnership with Lift Aircraft.

Lift, which is headquartered in Austin, Texas, is developing the Hexa personal aerial vehicle. The partnership will involve joint initiatives in market research, regulatory negotiations, and the potential for preorders of up to a hundred aircraft, pending approval from the Japan Civil Aviation Bureau (JCAB).

In the United States, the one-seater Hexa is classified as an ultralight vehicle by the Federal Aviation Administration, which exempts it from the requirement for a pilot’s license.

Marubeni and Lift have previously orchestrated public flights of the Hexa in Japan, notably in front of Osaka Castle this March. These demonstrations took place in the absence of a specific regulatory framework for eVTOLs in Japan, but JCAB rigorously evaluated the aircraft’s safety, testing program, and flight capabilities before granting permission for the demonstrations.

Matt Chasen, CEO of Lift Aircraft, expressed his satisfaction with the partnership, stating, “We are thrilled to join forces with Marubeni Corporation, a distinguished leader in the global market, to realize the potential of this technology in Japan and throughout the world.”

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Protecting Your Brand in Japan

In the vibrant marketplace of Japan, every business faces a dual challenge: establishing a unique identity and ensuring its protection. The threat of brand imitation and infringement looms large. Your brand serves as an emblem of trust, quality, and commitment for your customers.

Given Japan’s blend of traditional values and modern innovations, the significance of brand protection becomes paramount for long-term success.

Intellectual property in Japan is more than a legal construct. It symbolizes the nation’s deep-rooted respect for creativity, innovation, and original thought. For global brands stepping into Japan’s dynamic market, understanding the foundations of intellectual property and the protection it offers is essential. In a culture that values authenticity and dedication, safeguarding intellectual property can set a brand apart.

Overview of Intellectual Property Rights

In the Land of the Rising Sun, intellectual property is the keystone of innovation. The foundation rests on four pillars:

Patents: These protect inventions—anything that brings a new twist to the table, offering a tangible solution.

Copyrights: Whether it’s a groundbreaking novel or a captivating jingle, original works enjoy automatic copyright protection from the moment of creation.

Trademarks: Symbols, logos, and even certain phrases can gain protection, ensuring your brand remains unmistakably yours.

Design Rights: The visual appeal of products, characterized by shape, pattern, or color, can be shielded from imitators.

Trademark Registration in Japan

Embarking on the journey of trademark registration in Japan is about anchoring your brand. The process is methodical:

Preliminary search: Ensure your mark is unique.

Application: Furnish the requisite details, ensuring accuracy.

Examination: The authorities scrutinize for any overlaps or issues.

Registration: Once cleared, your mark gets its rightful recognition. The gravitas of this registration reverberates beyond mere legality. It’s an emblem of your dedication to originality and quality in a market that values authenticity.

Addressing and Preventing Infringements

Vigilance isn’t paranoia—it’s prudence. In the vibrant, ever-evolving Japanese market, being alert is crucial.

Routine Monitoring: Regular scans for any unauthorized use of your intellectual assets keep you one step ahead.

Cease and Desist: A stern, yet professional, initial approach to alleged infringers often does the trick.

Legal Recourse: When diplomacy fails, the robust Japanese legal framework steps in, offering remedies and relief. Remember, it’s not about flexing muscles; it’s about preserving the integrity of the brand that you’ve poured your heart into.

In a country that honors its past while racing toward the future, the weight of authenticity is immeasurable.

Securing Your Online Address

The internet is vast, and in this expansive space a domain name is your brand’s distinct marker. It’s your digital home, the place where your audience finds you. When you enter the Japanese market, getting one of the Japan domains isn’t just an online tactic—it’s a declaration of intent. Choosing a .jp domain name tells your Japanese clientele that you respect and value their culture.

It offers an immediate sense of familiarity, a virtual nod to your audience that says, “We’re here for you.” But this decision goes beyond cultural alignment. There’s a practical aspect to it. With a .jp domain, you signal search engines and the digital world about your target demographic, boosting your visibility within Japan.

So, be sure to get a .jp domain registration and secure your brand’s digital address. It stands on a foundation of trust and reliability. In the grand chessboard of digital strategy, having a .jp domain name will shield your business against potential imitators and amplifies your brand’s resonance in the heart of Japan.

Adapting Brand Communication for Japan

Every global market comes with unique communication subtleties, and Japan is no exception. Mastering these nuances can profoundly influence brand perception. Effective communication in Japan transcends mere language—it envelops tone, approach, and medium.

For a brand to resonate in Japan, understanding the equilibrium between directness and subtlety is pivotal. Messaging should be clear without seeming aggressive and exude confidence without appearing arrogant. Striking this balance lets your brand establish a memorable presence.

Cultural Compatibility without Stereotyping

Being mindful of Japan’s cultural backdrop is essential, but it’s equally vital to avoid broad generalizations or simplifications. Brands should delve deeper than the surface, seeking a genuine comprehension of the desires and inspirations of the Japanese audience. Comprehensive market research, interactive focus groups, and continuous feedback mechanisms help keep your brand relevant and authentic. This balance between global standards and localized appreciation is key.

Building Collaborative Alliances

Successful branding in Japan often means tapping into the power of local partnerships. Forming alliances with local entities provides a pathway for deeper market penetration and showcases a dedication to mutual success.

Collaborations can range from tie-ups with local brands to joint ventures and co-branded marketing initiatives. Such strategic partnerships amplify brand credibility, painting a picture of unity and bolstering both trust and market visibility.

In conclusion, use these strategies to protect your brand in Japan. From protecting intellectual property rights to deploying a strong online identity, take all necessary steps to grow in a safe environment.

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Binance Crypto Exchange Relaunches in Japan

Akihabara News (Tokyo) — Binance, the world’s largest cryptocurrency exchange platform, relaunched services in Japan on August 1. It offers purchase and withdrawals of cryptocurrencies utilizing Japanese Yen, supporting the trade of 34 tokens, including most popular ones such as Bitcoin and Ethereum.

“Japan has had very clear regulations since 2017 with crypto exchange regulations, and more recently, this year, with its crypto listing framework,” explained Binance CEO Changpeng Zhao in an address last month. “Binance is extremely happy to be able to participate in the Japanese market again.”

Binance, which was originally based in China, had previously operated in Japan, but the Financial Services Agency ordered it to stop trading without a license in 2018.

Last November, Binance acquired Sakura Exchange BitCoin, a licensed local platform, and changed its name to Binance Japan.

On the other hand, Kraken and Coinbase, the two largest global cryptocurrency exchange platforms besides Binance, both halted their operations in Japan earlier this year.

Coinbase announced its withdrawal in January, explaining that “due to market conditions, our company has made the difficult decision to halt operations in Japan and to conduct a complete review of our business in the country.”

The decision by Binance to reenter Japan thus runs counter to the recent trend.

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JAL Chief Sees Flying Car Development as Urgent

Akihabara News (Tokyo) — Yuji Akasaka, president of Japan Airlines (JAL), regards the spread of eVTOL (flying car) services around the nation as an urgent task.

In an interview with national broadcaster NHK, Akasaka explained, “If you go to a rural area, there are many places that are difficult to reach by land, such as mountainous areas, remote islands, and detours.” He believes that eVTOL transportation has the potential to quickly expand throughout regions such as Hokkaido in the north and on remote islands near Kyushu and Okinawa in the south.

He adds that these services will likely encompass not only tourism and business use cases, but also employment for emergency relief during disasters.

In Akasaka’s view, Japan needs to move quickly to develop and utilize eVTOLs.

“Flying cars are no longer vehicles of the future,” he asserts.

But he also adds that “the most important thing is how to get society to accept them. The biggest factor in achieving that is to properly prove their safety. We have a lot of safety know-how which we have built up over many years.”

JAL has partnered for some time with Germany’s Volocopter within the Japanese market, and more recently it reached an agreement with Wisk Aero, presumably with an eye towards providing longer-distance eVTOL flights in Japan.

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Flying Car Hits Speed Bump in Nobeoka

Akihabara News (Tokyo) — A plan to conduct eVTOL (flying car) test flights in Nobeoka city, Miyazaki Prefecture, has become a point of contention between the mayor and the city council.

Nobeoka Mayor Yoji Yomiyama is enthusiastic about the plan to conduct test flights in his southern Japanese city, and his administration included the project in its supplementary budget requests for the current year. Unexpectedly, however, the assembly passed an amendment which removed the eVTOL funding.

The mayor objected, and an extraordinary council session was held on July 11 in which the eVTOL funding plan was rejected for a second time.

Councilman Mikio Kitabayashi, who is leading the opposition, explained his objection to the funding as follows: “There are too many unknown points. I began to question whether it was acceptable to work on this project without deliberating it over a longer period of time. I would like to have more in-depth discussions with the mayor so that the mayor’s administration and the city council can work together for the development of Nobeoka City.”

For his part, Mayor Yomiyama denounced the council’s actions as “regrettable and unexpected,” pointing out that about 95% of the cost of the flight test was going to be covered by national subsidies in any case, and that the delay puts some of these subsidies in jeopardy.

Last autumn, it was announced that Nobeoka had received a Digital Garden City subsidy from the central government to begin preparing a “flying ambulance” service to launch in 2025 that would utilize an eVTOL.

This confrontation over the eVTOL test budget appears to be part of a wider political division within Nobeoka city. The mayor has been elected twice with opposition party support, while the majority of the council are local politicians of the ruling Liberal Democratic Party.

Nobeoka city has a population over 110,000 people.

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Finalizing Plans for Osaka Casino Resort

Akihabara News (Tokyo) — With basic government approval now in hand, MGM Resorts, the Orix Corporation, and their smaller partners are entering the process of finalizing plans for the Osaka casino resort, expected to cost about US$10 billion to construct.

“The next milestones include finalization of agreements, finalizing the design, and then construction of the project,” explained Ed Bowers, president and chief executive of MGM Resorts Japan, at Global Gaming Expo Asia.

The estimated timeline for the opening of the Integrated Resort (IR) continues to creep a bit backward. At the May 2 earnings call, MGM President and CEO Bill Hornbuckle put it somewhere in the first half of the year 2030.

He added that the land lease agreement would likely be finalized in the very near future, and that breaking ground on the construction site will probably occur slightly before or after the end of this calendar year.

A month ago, the Resona Research Institute chipped in with its recommendations for the Osaka IR, calling for additional attractions such as an extra commercial facility, a theme park, and marine leisure facilities.

MGM’s current estimation is that the IR will drive ¥420 billion (US$3 billion) in annual casino-related revenues and about ¥100 billion (US$720 million) in annual revenues from attractions not directly related to gambling.

The Resona Research Institute reckons that these non-gambling annual revenues could be boosted to about ¥260 billion (US$1.9 billion).

It is not clear whether or not MGM has any intention of integrating Resona’s suggestions or is even seriously considering them.

MGM’s Online Casino Hiccup

Although they appear to have been decisively defeated at this point, with polls now showing local public support swinging behind the Osaka IR, opponents of the project have not abandoned their anti-casino campaign efforts.

Most recently, the Association for Considering Gambling Addiction Problems petitioned the Japan Tourism Agency to revoke permission for MGM to build the Osaka IR, citing its involvement in online gambling.

Neither side disputes the main facts. Last September, MGM acquired a majority stake in the Swedish online casino firm LeoVegas. Up until that point, LeoVegas was illegally allowing Japan residents to gamble on its site. Before completing the acquisition, MGM asked LeoVegas to block access to its site from within Japan.

MGM argues that the potential conflict was thus resolved before it started, while the citizens group argues that MGM should be held responsible for clarifying what happened to the revenues illegally gathered from Japan before it took over the company.

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Okada Manila Enters Legal Battle with Spurned US Partner

Akihabara News (Tokyo) — Battle lines have been drawn between Tokyo-based Universal Entertainment Corporation and Miami-based 26 Capital Acquisition Corporation over their October 2021 agreement which would have seen the Okada Manila casino resort listed on the Nasdaq stock market in New York.

The original agreement called for a merger between Universal’s main subsidiary in the Philippines–Tiger Resorts Asia–and 26 Capital Acquisition, a special purpose acquisition company, which would allow the casino resort to be listed on the Nasdaq. The enterprise value for Okada Manila was set at US$2.6 billion, and the agreement involved involved a cash injection of US$275 million.

The October 2021 press release noted that “the transaction is expected to close in the first half of 2022.”

However, this merger schedule was derailed in April 2022 when the Supreme Court of the Philippines ordered that the controversial former owner of both Universal Entertainment and Tiger Resorts, billionaire Kazuo Okada, be restored to the executive role which he had played before being removed under a cloud of scandal in 2017. From the end of May to early September 2022, agents of Okada temporarily seized control of the Okada Manila resort by force.

During that three-month occupation, 26 Capital Acquisition Chairman and CEO Jason Ader made a number of public statements which appeared to be fully supportive of Universal Entertainment.

After Universal Entertainment, backed by the Philippine National Police, seized back control of the casino resort in September, the way appeared to be clear for the agreed merger to proceed and for Okada Manila to gain its Nasdaq listing.

However, months ticked by with no forward movement, and confirmation that matters had gone awry became clear when 26 Capital Acquisition filed a lawsuit this February in the US state of Delaware against Universal Entertainment alleging that the Tokyo firm was unreasonably dragging its feet on consummating the planned merger.

That trial is scheduled to begin today.

Universal Entertainment had been quiet about its own position on its dispute with 26 Capital Acquisition, but that public silence ended dramatically at the end of June with a four-page statement announcing the termination of the October 2021 merger agreement. Universal Entertainment explained that it “came to consider that 26 Capital, during the course of the conclusion of the merger agreement and implementation of transactions under the merger agreement, made material breaches of the merger agreement and engaged in fraudulent misconduct through various misstatements and unauthorized disclosure of confidential information.”

Calabrese Consulting, an accounting firm which advises special purpose acquisition companies, was named as an organization which had allegedly been provided confidential information by 26 Capital Acquisition.

Universal Entertainment also complained that Ader “gave interviews to news outlets in late 2022” without gaining their advance consent, and that he had posted about the merger on his Twitter account.

They also alleged that Ader “pursued a campaign to push the merger to close at all costs, even in violation of US securities laws, because Mr. Jason Ader has extreme financial incentives to close the merger.”

26 Capital Acquisition responded with a short statement last Wednesday, arguing that it “believes that the termination notice is baseless. 26 Capital believes that Tiger Resorts and its affiliates have engaged in repeated contractual breaches to avoid closing, which is the subject of a pending Delaware litigation going to trial on July 10.”

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SkyDrive Flying Car Gains Weight

Akihabara News (Tokyo) — SkyDrive’s ambition to become Japan’s leading eVTOL (flying car) company gained additional weight with a flurry of important new partnerships and a crucial design change.

When it was announced over a year ago that SkyDrive was linking up with storied auto and motorcycle maker Suzuki Motor Corporation on technology research and development, manufacturing plans, and mass-production systems, it already sounded quite promising, though few details were provided.

This week it was revealed that SkyDrive would be establishing a wholly-owned manufacturing subsidiary firm which would utilize a Suzuki facility in Shizuoka Prefecture to mass produce its first line of eVTOL aircraft.

At the same time, it was revealed that the SkyDrive eVTOL is gaining size and weight over the original SD-05 design, and becoming a three-seater (not a two-seater) with a longer flight range.

In fact, the entire configuration has altered to some degree. The company appears to be dropping the designation “SD-05” altogether in favor of an eVTOL aircraft which will be branded simply as “SkyDrive.”

This new design is about 40% larger than the original SD-05 specifications, with about double the anticipated flight range at 15 kilometers. The extra seat will allow a pilot to transport two passengers to their objective, making the vehicle more practical for consumer taxi services.

Mass production of the SkyDrive eVTOL is now expected to begin next spring.

In the initial announcement of the SkyDrive-Suzuki partnership last year, it was stated that India would become the “initial focus” for the aircraft, but the new statements make no reference to this earlier notion.

Thales to Provide Flight Control System

Also announced this week is that the French firm Thales has been tapped to provide the flight control system for the SkyDrive eVTOL.

Arnaud Coville, SkyDrive’s chief development officer, explained that “Thales’s flight controls have long been trusted in the aviation industry. As an eVTOL manufacturer, SkyDrive values safety above all, and we believe that partnering with Thales in flight control, which is a key safety-related technology, will enable us to achieve the safety objectives of our aircraft.”

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