Gaming has been discussed—and rejected—in Japan for years. Whether it was the competition with the powerful pachinko industry or a general distaste for gambling, the legalization of gaming in the nation has never gotten beyond the talking stage—until now.

With multiple challenges over the past several years—including devastating earthquakes, tsunamis, typhoons and an economy that has not recovered from a 1990s recession—Japan now seems poised to seriously consider the introduction of integrated resorts in various regions around the country.

Michael Hands, a Korean resident with intimate knowledge of gaming development in Asia, says he met with Issei Koga, chairman of the Diet’s bipartisan casino committee, recently and was assured that gaming is on the fast track.

“I was advised that the initial promotion law bill is complete and ready for submittal to the Diet for review and approval,” Hands says. “The actual timing of the submittal has not been determined, but I was assured that this would take place later this year. I was also advised that there was a 50-50 chance that the bill will be approved and passed prior to the end of 2011, and a 100 percent chance of it being approved and passed by June 2012.”

The formal name of the bill that will be introduced is the “Bill to Promote the Realization of a Special Zone for Integrated Resorts.” The IRs would be modeled after the Singapore casinos, which include hotels, shopping, entertainment, meeting space and a small designated space for gaming. Also like Singapore, locals would have to pay an entrance fee, yet to be determined.

According to Hand, after passage the bill would be turned over to a specific ministry for the implementation of rules and regulations.

“It is expected that there will be a public comment,” he says, “and it’s important for interested parties to retain representatives who have access and industry knowledge to advise in crafting the implementation law bill in order to create a win-win for everyone.”

Hands says the process will take at least two years.

To avoid the fate of previous casino measures, Toshihiko Satake, a political aide to Koga, says that all viewpoints are being considered and the benefit of gaming must be palpable.

“With these measures, we want to make sure we get as much support as we can,” Satake told GamblingCompliance. “There have been some instances where even if a majority of legislators supported a bill, a handful of vocal objections were able to stall a bill’s passage. We’re listing to congressional leaders we should have meetings with.”

While new Prime Minister Yoshihiko Noda has not indicated whether he will support any gaming bill, his policy chief and former foreign minister Seiji Maehara has supported the construction of casinos in the past.

At least one of the casino regions would almost certainly be designated for Sendai, a city almost destroyed by the March earthquake and subsequent tsunamis. Other areas being promoted as IR sites are Osaka, Okinawa and, of course, Tokyo.

One observer, however, thinks the time may not be right for such a bill.

“I feel the timing may not be ripe for a bill to be submitted,” said Tetsu Kohama, tourism professor at the Yokohama College of Commerce to GamblingCompliance. “Such a bill may not get the public support. The new prime minister has cleaned out ministers appointed by the former prime minister and lawmakers are watching out for a possible snap general election. I think it’s a difficult time because the political landscape continues to be unstable.”

Hands cautions non-Japanese companies to let the process take its own course.

“Interested parties, instead of lobbying the central government, should get out into the country and develop a relationship with a local and prefecture government, because these are the constituencies who will make the decision on with whom they will partner,” he says. “The central government is always happy to meet with major overseas companies, but their job for now is completed once the bill has been submitted.”

By Staff