Japan’s governing Liberal Democratic Party has given up trying to pass a casino legalization bill this year and plans instead to renew the effort when the Diet reconvenes in 2015, a move that will make it very difficult for any gaming resorts to open in time for the 2020 Summer Olympics in Tokyo.
The bill has encountered stubborn opposition from lawmakers, mainly among members of the LDP’s junior coalition partner, Komeito, a Buddhist-backed party, and with the current session of the Diet adjourning the end of this month, there is no time for debating or building a consensus behind legalization.
A campaign finance scandal tied to the resignation of the government’s Justice and Trade and Industry ministers also has weakened the LDP and Prime Minister Shinzo Abe, who has been a vocal supporter of resort casinos as an economic development tool.
Analysts believe a Japanese market centered on two destination-scale casinos in Tokyo and Osaka and a handful of smaller venues in regional tourist markets could generate as much as US$15 billion in annual revenue, and most of the industry’s major operators have indicated an eagerness to invest.
However, casinos remain a controversial issue in Japan and concerns about problem gambling and other potential social ills loom large for many lawmakers. At the same time, polls show public support to be mixed at best, and Tokyo Governor Yoichi Masuzoe has said casinos are not a priority of his administration.
