The government of Japanese Prime Minister Yoshihide Suga has indicated that it will continue to pursue integrated resorts (IRs) with casinos as a way to bring new tourism and an economic shot in the arm to the country.
According to a December 15 note from banking group Nomura, the latest tax reform proposals of Japan’s governing coalition made mention of tax proposals for IRs in financial year 2022. The note, cited by GGRAsia, suggests that the Suga administration still has IRs on the front burner, and gives “some idea of the direction of travel.”
Nomura said IRs were included in collective economic-stimulus policies referred to as “Suganomics” after the new prime minister; they were formerly known as “Abenomics,” after former PM Shinzo Abe, who led the charge for IRs in Japan and retired in September.
Nomura noted three specific proposals related to gaming operations. One would exempt from taxation the casino income of those not classified as residents in Japan; a second would limit purchase tax allowances on casino sales; and a third would clarify the taxation of casino prizes.
“This is an indication that, although the debate about integrated resorts has gone quiet because of the pandemic, the government is still intent on making them a reality,” said Nomura.
Up to three IRs will be licensed in Japan in Phase I of the industry. If the initial trio of IRs live up to their promise of creating new industry, boosting tourism and providing jobs and economic development, they could be followed by more resort properties after the first seven years. Local governments interested in hosting an IR include Yokohama, Osaka and Nagasaki. Each one must find a private-sector partner, then apply to the national government for the right to host an IR.
The central government said will begin receiving those proposals starting in October 2021, with the first IRs possibly opening by the end of the decade.
