Since 2016, Japan has been slowly moving toward the introduction of a legal casino industry. The process, effectively suspended by the coronavirus outbreak that started last year, is back on track with several potential host cities issuing requests for proposals on integrated resort (IR) developments.
But the good news may be quenched by the possibility that China’s promised ban on travel to foreign casino destinations could damage tourism to Japan in general. According to Inside Asian Gaming, House of Representatives member Kenji Eda recently expressed concerns that the plan to approve three IRs with casinos could put Japan on the blacklist.
The blacklist was announced by China’s Ministry of Culture and Tourism in 2020. It’s said to include overseas tourist destinations that are “disrupting” China’s outbound tourism market by opening casinos targeting the mainland Chinese. The blacklist would impose restrictions on travel to overseas locations on the list.
“In August 2020, China announced that it would create a blacklist system to restrict travel to foreign cities that had a casino, with the allegation that overseas casinos threatened the property and safety of their citizens,” Eda wrote in a blog entry. “With that in mind, we can understand that there are concerns that overseas casinos are a hotbed of crime, particularly corruption and graft. I request an answer if the government is aware of this system.
“Further, this, adding to the impact of the coronavirus, could have a major impact on IR (casino) operation in East Asia, which relies heavily on wealthy Chinese visitors. In the past, The Chinese government has restricted travel to South Korea because of deployment of the US military’s ground-based missile interception system, and there is a risk they could use this system politically.
“Considering this system, even if we build casinos (IR) in Japan, we cannot have expectations that foreigners, and especially Chinese tourists, will be able to visit.”
So far, the government is choosing to be mum on the subject, though it did issue this response: “We are aware that the Chinese government has announced the establishment of a system as you described in August 2020, but the specific details are yet to be announced so we will refrain from comment.”
In related news, according to AGB Nippon, Nagasaki Prefecture has “the best managed bid in Japan’s IR development race, giving them a strong chance to become a licensed municipality.”
As a smaller regional market, it’s drawn none of the global names, such as MGM Resorts International, which has always been committed to Osaka. Here are the lesser-known bidders interested in Nagasaki:
- Casinos Austria International Japan, which entered the Japan IR race in November 2018 in the firm’s first foray into Asia
- The Current Group, a consortium said to include the Japan-based Current Corp. as well as Get Nice Holdings, Sofitel Macau and Success Universe
- The Niki & Chyau Fwu (Parkview) Group, which proposes a “Super Smart Community (with) cutting-edge technology centered on an IR in Sasebo City and spreading to Omura Bay”
- One Kyushu, the consortium of Pixel Companyz, Groupe Partouche of France and TTL Resorts
The Oshidori Group, made up of Hong Kong-listed Oshidori International Development and U.S. tribal casino operator Mohegan Gaming & Entertainment. Mohegan had its sights set on an IR in Tomakomai, but was foiled by Hokkaido Governor Naomichi Suzuki’s decision not to enter the race. Hokkaido, in announcing its initial budget for 2021 in February, did not include funds, as Suzuki said an IR was not in the immediate future for Japan’s second largest island and northernmost prefecture.
