First hearing sparsely attended
Despite widespread public opposition to casino gaming in Japan, only 100 people turned out at the first of nine scheduled public hearings on the matter. That meeting was held in the capital city of Tokyo; subsequent meetings were held in Osaka, Hiroshima, Fukuoka, Sendai, Sapporo, Nagoya, Toyama, and Takamatsu, with the last one scheduled for this week.
Scant attendance aside, casino critics expressed concerns about the societal ills associated with gaming, but proponents also spoke up, some inquiring about the timetable before the first integrated resorts open.
Global gaming operators interested in the market are still looking for clarity about the legal framework, including the regulations, tax rate and operational rules.
“Our common goal is to see the introduction of world-class integrated resorts in Japan that drive economic, tourism and employment growth,” said Steven Tight, president of international development at Caesars Entertainment in a report published by Bloomberg.
MGM Resorts CEO Jim Murren reflected increasing doubts about the profitability of the industry in Japan, which some think may be saddled with onerous regulations and restrictions, due in part to public opposition. “The opportunity in Japan is unclear at the moment,” Murren said.
Those rules may include: limits on the amount of casino space within the resort area; a possible ban on ATMs in the casino; tax rates, with a fixed fee and a proportion of gross gaming revenue; limits on the number of times local residents can visit the casino; and a registration system called “My Number” to be used as identification for locals and foreign residents.
Japan’s gaming industry was once estimated to be worth $40 billion per year, which prompted most global gaming giants to get in line with open checkbooks, promising to spend as much as $10 billion to develop an integrated resort. Now their enthusiasm is more tempered. Seth Sulkin, chairman of a task force on integrated resorts with the American Chamber of Commerce in Japan, told the Washington Post, “There’s just a lot of things the government could get so wrong that gaming companies will decide it’s not a worthy investment.”
Japan is expected to award two to three IR licenses to start, with Osaka and Yokohama considered the most likely locations, though Tokyo is often mentioned as well; regional favorites include Sasebo in Nagasaki, as well as Hokkaido, Nagoya and Sendai.
