Enabling bill is just Step 1
Japanese lawmakers who approved legislation to legalize casinos in the country are now addressing concerns about problem gambling, according to the Jiji Press newswire service. The same day the Integrated Resorts enabling bill took effect, Chief Cabinet Minister Yoshihide Suga, Health, Labor and Welfare Minister Yasuhisa Shiozaki and National Public Safety Commission Chairman Jun Matsumoto talked about ways to combat addiction.
“We need to take thorough measures to prevent easy gambling addiction, including from existing publicly managed racing and games,” Suga said.
According to GGRAsia, a 2014 government study showed that 4.8 percent of Japanese adults, or about 5.36 million people, had a gambling problem, a social issue that could be exacerbated by easily accessible legal casinos. Presently, gambling in the country is limited to slot machine and pachinko parlors, as well as wagering on horse, bicycle and powerboat races.
In the aftermath of the December 14 vote, public support for Japanese Prime Minister Shinzo Abe’s cabinet fell nearly 6 percentage points compared to November.
Casino legalization in Japan is a two-statute process. The enabling bill must be followed by a second piece of legislation detailing how casinos will be administered, taxed and regulated. The enabling law already includes provisions about problem gambling. Some politicians have suggested a Singapore-style system in which citizens and permanent residents must produce ID and pay a fee to enter either of the city-state’s two casinos.
In addition, the Nikkei Asian Review has reported that “at risk” gamblers could have their access to casinos limited by the government.
However the situation is managed, no casino is likely to open in Japan before the year 2021. “Japan will have to pass the implementation bill, which may take six to 12 months, and then undergo the request for concept and request for proposal process, which could at least take six months. This pushes the opening of the first casino to at least 2021/22,” said Morgan Stanley.
Brokerage CLSA Ltd has estimated that a Japanese casino industry could generate US$40 billion or more in annual revenue, according to Bloomberg News. To start, two integrated resort licenses could be issued, one for Tokyo and one for Osaka with a possible third license for Yokohama, GGRAsia reported. Over time, additional licenses could be issued outside major metropolitan areas. International operators including the Las Vegas Sands Corp., MGM Resorts International, Hard Rock International, Melco Entertainment and Genting Singapore Plc have expressed interest in bidding for a casino license in Japan.
