Japan Lawmakers Hope to Submit Casino Bill

Japan’s cabinet is looking to submit part II of its Integrated Resorts bill to the Diet on April 27, which lays out the regulations surrounding the gaming industry. If it succeeds, the bill could be passed before the current parliamentary session ends on June 20. One of the front-runners for an IR is Osaka, where Yumashima Island (l.) is likely to be the location.

Japan Lawmakers Hope to Submit Casino Bill

Melco opens Osaka office

Japanese cabinet members hope to submit the Integrated Resorts Implementation Bill for consideration to the country’s parliament on April 27, reports the Kyodo News Agency. If that happens, it’s possible the government’s Liberal Democratic Party and its junior coalition partner the Komeito could pass the measure before the end of the current parliamentary session on June 20.

GGRAsia reports that coalition lawmakers have reached consensus on all 11 major policy areas regarding new casinos, including that there should be three gaming venues to start; that Japanese residents must pay a 6,000 yen (US$56) fee to enter and abide by weekly and monthly limits on attendance.

Japanese brokerage Nomura has said the bill is unlikely to pass until the second half of 2018 or the first half of 2019. And most industry observers agree it could be 2025 before the first casino resort opens in the country.

“Now that the number of areas to be certified for IRs has been lowered to three, we think it is less likely that neighboring prefectures, such as Osaka and Wakayama, will both be selected,” wrote Nomura analyst Daisuke Fukushima. “Osaka aims to construct the world’s largest IR at Yumeshima, and targets further synergies by working to also host the 2025 World Exposition.”

According to Sankei Shimbun, other local governments that have thrown their hats in the ring include Tomakomai City, Kushiro City and Rusutsu Village, all on the northern island of Hokkaido; Aichi Prefecture around Tokoname City; Osaka City in Osaka Prefecture; Wakayama City in Wakayama Prefecture; and Sasebo City in Nagasaki Prefecture.

“According to the April 4 Nikkei, Yokohama City in Kanagawa Prefecture had previously aimed to attract an IR in light of avid interest from local businesses, but has now shelved these plans,” noted Nomura.

Opposition to large-scale casinos remains. The Yomiuri Shimbun says the introduction of casinos should not be “a foregone conclusion.”

“If the opening of casinos is expedited by setting the deadline beforehand and with only a perfunctory study, it could create a breeding ground for future problems,” the newspaper said. “It is imperative to stop and discuss whether casinos, which in the first place rely on money squandered by gambling addicts, are fitting as resort developments to be promoted by the government as a whole.”

IRs are a keystone of Prime Minister Shinzo Abe’s plan to boost tourism, and Reuters reports that international casino operators are all in on being first to market in Japan, which first legalized casinos in late 2016.

William Shen, managing director of Korea and Japan at Caesars Entertainment Corp, said lawmakers “are heading in the right direction, and we remain highly enthusiastic about the Japan opportunity.”

Others wanting to get in on the first round of development are the Las Vegas Sands Corp., MGM Resorts International, Galaxy Entertainment and others. Melco Resorts & Entertainment, for example, just opened an office in Osaka.MGM Resorts has maintained an office in the nearby Azuchimachi district since 2014.And Genting Singapore is “diligently preparing” to bid for a Japan casino license in 2018, reports Inside Asian Gaming.

The company said it is “optimistic that the Japan Integrated Resort Execution Bill will be tabled in this year’s Diet session which will pave the way for the formal bidding process for Japan gaming license.”

Macau firm Hogo Digital which also has an office in Osaka, says it will partner with Macau-based gaming operators to offer “familiarization tours of the properties, including both front and back of house,” to help Japan understand the Macau model—though most onlookers agree that Japan is following the more stringent Singapore model.

“The goal is to offer Japanese executives a chance to understand the breadth and scale of an integrated resort and also clearly see the positive potential impacts the industry will have in the local market,” Hogo said in a press release.

**GGBNews.com is part of the Clarion Events Group of companies (Clarion). We take your privacy seriously. By registering for this newsletter we wish to use your information on the basis of our legitimate interests to keep in contact with you about other relevant events, products and services which may be of interest to you. We will only ever use the information we collect or receive about you in accordance with our Privacy Policy. You may manage your preferences or unsubscribe at any time using the link in our emails.