Anti-casino governor elected in Okinawa
On October 4, the Japanese government officially enacted its Basic Act on Gambling Addiction Countermeasures. The legislation, officially approved by the Diet in July, was pivotal to Japan’s Integrated Resort Implementation Bill because it addresses widespread concerns among the Japanese about gambling addiction.
Industry analysts say the landslide re-election of Prime Minister Shinzo Abe as president of the ruling Liberal Democratic Party is not likely to hasten the opening of the country’s first three casinos.
“I don’t think his re-election will have any impact on the IR situation other than it will keep moving it forward,” Grant Govertsen, an analyst at brokerage Union Gaming Securities Asia Ltd., wrote in an email to GGRAsia. “Otherwise this doesn’t change the pace of IR events. We continue to believe that the first licenses are at least two years aw
ay from being issued, if not longer, and that the first IR is unlikely to open prior to 2025.”
Mike Tanji, chairman of Tokyo-based Gaming Capital Management Inc., agrees with Govertsen that Abe’s victory will not “much affect” the selection and licensing of Japan’s first casino operators, because many details must be ironed out before the industry launches.
“Firstly, it is required to have the Casino Control Committee to be formed,” he said. “At the same time, there shall be certain guidelines to be announced by the Ministry of Land, Infrastructure, Transport and Tourism.”
“There shall be detailed legislation further to be discussed, and local government shall prepare certain procedures for RFPs,” Tanji added. “These kinds of issues will take relatively a long time since our country has no experience in this field.”
Meanwhile, according to AGBNippon.com, the victory of the All-Okinawa gubernatorial candidate Denny Tamaki could mean the end of any chance that Okinawa will bid on an IR. That may be disappointing news for operators including Steven Tight, president of international development for Caesars Entertainment Corp., who recently told the Nikkei Asian Review, “It would be a fascinating opportunity for us if the governor were to support an integrated resort, because Okinawa would be a tremendous destination for tourism.”
Brokerage CLSA Ltd. said the first casinos may not open until 2026, with Tokyo, Osaka and Yokohama the likely contenders for the first three IRs approved by lawmakers. But according to Asia Gaming Brief, Yokohama Mayor Fumiko Hayashi says she believes only one IR will be licensed within the Kanto region, which includes Tokyo and Yokohama as well as Chiba.
