Bill first submitted in 2013
The recent appointment of casino supporter Toshihiro Nikai as secretary general of Japan’s ruling Liberal Democratic Party could bode well for the country’s long-deferred integrated resort bill.
According to the Chicago Times, since 2013 the government has held out these resorts as part of a larger economic growth strategy. Supporters of the legislation including Prime Minister Shinzo Abe hoped to see the facilities open in time for the 2020 Tokyo Olympic and Paralympic Games.
“Integrated resorts are an extremely effective tool when soliciting private investment for making exhibition sites and other such facilities,” said Deputy Chief Cabinet Secretary Koichi Hagiuda said at a recent press conference.
The bill was first submitted to the Diet, or Japanese parliament, in December 2013. It was shelved in November 2014 when the House of Representatives was dissolved, and resubmitted in April 2015. It has been held up in part due to opposition from Buddhist leaders in alliance with the Komeito, the LDP’s ruling coalition partner. Both are concerned about the possibility that gambling addiction and crime will rise if casinos are legalized.
Nikai indicated his support for passage of the casino bill last month, telling reporters, “If integrated resorts are necessary, then it’s important to openly and squarely speak of their necessity and make efforts to gain public support for them.”
According to an unnamed LDP official, the party believes “there is a chance Komeito could be persuaded” to throw its support to the bill to boost the country’s economy.
But Mikio Tanji, chairman of Gaming Capital Management, said earlier this year that an IR site may not be identified in Japan before 2019—and that could be an optimistic timeline. And in March, Spectrum Asia CEO Paul Bromberg told Forbes that Japan has “missed the boat” on casino resorts.
“Legalizing gaming is not a major issue domestically, and there are more pressing matters currently facing the government,” he said at the time.
Despite little progress on the issue—and the softer economy—interest remains high in Japan, where pachinko parlors reportedly generate 19 trillion (US$187 billion) a year. U.S. operators like MGM Resorts International and Wynn Resorts have looked at the market, and Fitch Ratings has estimated that two casino resorts in Yokohama, near Tokyo and Osaka, could generate roughly $7 billion in gross gaming revenues. Other possible locations include the skiing destination of Hokkaido and Nagasaki, home of the Huis Ten Bosch resort.
Daniel Cheng, senior vice president of business development for Hard Rock International, said earlier this year that the U.S.-based company still has high hopes for Japan. “Japan is the next Macau,” he said.
