TokyotoKeiba (TK: MC ¥158bn) is the landowner behind Oi Racecourse. I know that for some people, that alone is a turnoff—“gambling stock,” “sin stock,” or even concerns about animal welfare. But the reality in Japan is a bit different. Horse racing is a well-established, socially acceptable leisure activity, probably more “mainstream” than pachinko at this point. Because of that, the company’s income stream is more stable than you might think. The historical backdrop, which I discussed my note the clients, helps explain why racing is so widely accepted in Japan.
What pulled me into the story was a Toyo Keizai piece arguing that horse racing is actually one of the entertainment fields where Japan can compete globally. That led me to dig into TokyotoKeiba, and the racing-industry data in this note comes from that article. Happy to hear any alternate takes or pushback.
Also worth noting: foreign ownership of TK is already 19%, so I’m definitely not early to this stock. But that doesn’t mean there’s no angle left.
TK was established on December 20, 1949, through equal investment by the Tokyo Metropolitan Government and the private sector, in order to secure financial resources for postwar reconstruction and to provide entertainment to the citizens of Tokyo. The land for the Oi Racecourse was gradually acquired by TK from the Tokyo Metropolitan Government,
Since then, Japan has become the largest, healthiest, and most structurally resilient horse-racing market globally.
My note outlines why I believe TK has strong growth potential, driven by two key factors: the rising popularity of SPAT4, its online betting platform, and the repurposing opportunities inherent in its scarce Tokyo real estate holdings.
If you’re interested in learning more about TK and its growth potential, I’d like to invite you to experience my service—completely free of charge. I am confident that once you discover the value, convenience, and quality I offer, you’ll be glad you gave me a try. Some of my clients who have a dedicated Japan research team find my take unique and actionable.
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