ASIA IN FOCUS

Japan investigates offshore iGaming sites, PAGCOR casino sales to begin 2026, MGM doubles down on Osaka IR and more.

ASIA IN FOCUS

Japan to Launch Investigation of Offshore Casinos

Japan’s National Police Agency (NPA) is planning an investigation of offshore gambling operations that target Japanese players. Legal gambling in Japan is limited to the lottery and wagers on horse racing, bicycle racing, motorcycle racing, and powerboat racing.

According to the NPA, online gambling soared during the Covid-19 pandemic. In late 2018, Tokyo-based digital analysis firm Similarweb Ltd. tracked about 700,000 visits per month. That figure spiked to about 83 million monthly visits by the fall of 2021.

Easy access to web-based gambling has increased concerns about addiction. According to the Tokyo-based Society Concerned about the Gambling Addiction, online casinos accounted for 20.3 percent of calls in 2023, up from just 4.3 percent in 2019.

An August 29 editorial in the Yomiuri Shimbun said some players are “(incurring) large debts via online casinos. … The current situation in which people can freely access online casinos is serious and cannot be left unchecked.”

Sale of PAGCOR-Owned Casinos to Begin in 2026

Alejandro C. Tengco, chairman and CEO of the Philippine Amusement and Gaming Corp. (PAGCOR) says the regulator will begin selling off its casino assets sometime in 2026.

Speaking at a September 10 gaming summit in Manila, Tengco said the move will “provide a level playing field” for stakeholders, and ensure PAGCOR does not compete against its own licensees. PAGCOR expects to reap ₱50 billion (US$891 million) from the sale of 40-plus casinos.
A number of lawmakers have criticized PAGCOR for its dual role as regulator and owner-operator, calling it a clear conflict of interest.

 

MGM Reaffirms Commitment to Osaka IR

MGM Resorts International has demonstrated it’s all-in on its ¥1.27 trillion (US$8.89 billion) integrated resort (IR) in Osaka, Japan. The U.S.-based gaming giant has surrendered its right to withdraw from the project without penalty.

MGM’s original agreement allowed it to back out of the project by September 2026 under certain conditions, including if initial investments exceeded ¥1.27 trillion. Though costs have already reached that level, MGM has waived its option to withdraw.

Prep work for the IR on Yumeshima Island in Osaka Bay will begin by the end of the month.

Thai PM Likely to Join the Push for Casinos

Thailand’s newly appointed prime minister, Paetongtarn Shinawatra, is expected to continue the country’s push for Singapore-style “entertainment complexes” with casinos.

As in Singapore, Thai casinos would emphasize non-gaming attractions such as theme parks, concert arenas, convention space and hotels. Gaming floors would occupy just 3 percent to 10 percent of total resort space.

Gambling is currently illegal in the country, with the exception of horse racing and the lottery. Black-market gambling is widespread, and casino resorts would enable the government to benefit from the pastime. A 2023 government study found that entertainment complexes could boost tourism revenue by 406.6 billion baht ($US12 billion) in the first year.

Five casinos are expected to be licensed: two in Bangkok, one each in Chiang Mai and Phuket, and one in the Eastern Economic Corridor.

Philippines to Slash Gaming License Fees

The head of the Philippine Amusement and Gaming Corp. (PAGCOR) has announced the regulator will cut gaming license fees and taxes starting in January 2025. PAGCOR chairman and CEO Alejandro Tengco says the move is designed to bring more investment to the country.

License fees will drop to 30 percent for land-based licensees and 25 percent for resort operators that also offer iGaming. “By lowering our license fees, to be at par with the global industry standards, we hope to attract and keep more investors in place,” Tengco said.

In a similar action, earlier this year the tax rate on gross gaming revenue (GGR) was reduced to around 35 percent from 55 percent.

Chinese Football Association Bans 43 for Match-Fixing

The Chinese Football Association (CFA) has banned 38 soccer players and five club officials for gambling and match-fixing. In comments on September 10, Zhang Xiaopeng of the Ministry for Public Security said an investigation “uncovered a series of online gambling, match-fixing and bribery cases” involving 128 suspects and 41 clubs.

The bans are part of Beijing’s ongoing war against corruption in sports. Midfielder Jin Jingdao, forward Guo Tianyu and goalkeeper Gu Chao, all of China, were among those who got lifetime bans. Seventeen others were banned for five years.

A number of CFA officials have been sentenced to prison for embezzlement and bribery. Earlier this year, former CFA chairman Chen Xuyuan got life in prison for accepting bribes worth MOP88 million (US$11 million). Former CFA vice-president Wang Dengfeng got 17 years. In August, former VP Li Yuyi got 11 years.

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