More local governments ponder host role
The Japanese government has announced additional requirements for the country’s planned integrated resort industry, which will launch with three IRs estimated to open in 2025.
Among other things, the newly issued IR Development and Promotion Ordinance stipulates that IRs must include massive hotels with total floor space that “substantially exceeds” 100,000 square meters (more than 1 million square feet).
According to Inside Asian Gaming, that would probably be larger—possibly much larger—than the Tokyo Dome Hotel, with 47 floors and total floor space of 105,856 square meters. One estimate indicates that an IR hotel under these conditions will have about 2,000 guest rooms, suites and other accommodations.
Meeting and conference facilities must also measure up, the ordinance states, and include a central room with capacity for “significantly more than 1,000 people.” Total capacity for the entire facility “must be at least double that of the largest conference room.”
Gaming space remains at 3 percent of total floor area.
According to Asia Gaming Brief, some nongaming attractions will be left up to local governments and operators, but the ordinance suggests stakeholders consider “theaters, entertainment centers, music halls, arenas, movie theaters, museums, art houses, restaurants and other facilities.”
Each IR must also showcase local tourist attractions and “facilitate visits out to those areas on a one-stop service basis,” AGB reported. “Operators are specifically guided to integrate high-technology such as VR to promote the local tourist venues,” the news outlet continued.
Billboard ads for IRs will be limited to international airports and port facilities as a safeguard against problem gambling—a leading reason many Japanese have not supported the introduction of an IR industry. To combat anti-money laundering, all cash transactions by casino customers that exceed JPY1 million (US$9,180) must be reported to the Casino Management Board.
Public comments on the ordinance will be accepted until March 4.
Meanwhile, the Kyodo News Agency reports, local governments continue to express interest in hosting one of the first three IRs, though only three—Osaka City, Wakayama Prefecture and Nagasaki Prefecture—have firmly declared themselves.
Other possible locations include Hokkaido, Yokohama and Tokyo; Chiba City has announced that it, too may join the race, and CalvinAyre.com reports that Nagoya Mayor Takashi Kawamura is scouting locations for a possible IR. Shizuoka Prefecture’s Makinohara City has also indicated it may pursue an IR bid.
In addition, GGRAsia reports, Nagoya City in Aichi Prefecture will decide before summer if it wants to get in the game. Mayor Takashi Kawamura is “positively considering making an application” for a resort, Kyodo reported.
Japanese lawmakers led by Prime Minister Shinzo Abe legalized casino gaming in December 2016, and have been formulating the rules and regulations for the industry ever since. Some analysts say a Japan IR industry at full maturity could generate $25 billion in revenues per year.
