Former Japan House of Representatives member Tsukasa Akimoto, ousted from his post in the aftermath of corruption charges related to the country’s coming integrated resort (IR) industry, was indicted last week on a new bribery charge.
According to the Japan Times, Akimoto is alleged to have taken JPY2 million (US$18,450) from Chinese lottery provider 500.com Ltd. and had expenses of around JPY1.55 million covered by the company for a 2017 trip to its Shenzhen headquarters. The Chinese company reportedly wanted to play a part in the IR industry, possibly as a licensed operator.
Akimoto, formerly of the ruling Liberal Democratic Party, spearheaded the nation’s move to legalize casino resorts. He was previously indicted for receiving JPY3 million in cash from 500.com in September 2017 and also accepting a trip to Hokkaido in 2018.
Akimoto has denied any wrongdoing. Three others have been indicted in the case—Zheng Xi, a former executive of 500.com’s Japan unit, and Masahiko Konno and Katsunori Nakazato, both advisors to the gambling operator. All have admitted bribing the Diet member.
Akimoto was first elected to the House of Councilors in 2004, after serving as a secretary to a lawmaker. In 2012, he successfully ran for a seat in the House of Representatives.
Akimoto says he is innocent of all charges.
Amid the uproar surrounding the case, would-be casino operators are proceeding with their plans. Speaking at the first Japan IR Expo in Yokohama in January, Galaxy Entertainment Japan General Manager Satoshi Okabe said, “We value sustainable contributions to the local community and believe that we need a social license, responding to social issues and residents and collaborating with local business.”
Chief Operating Officer, Japan Development, Ted Chan, added, “Galaxy wants to combine the best of Asia, Europe and Japan to make an IR that is unique to Japan. We need to educate the public in terms of the pros and cons of integrated resorts.”
Jean-Louis Masurel, managing director of Galaxy’s international partner Société des Bains de Mer said an “IR is not just about IR.” “It has more meaning. It is a culture. It should be about dreams, fun and beauty, and I want to bring that to Japan,” he said. Galaxy is one of seven international operators pursuing an IR development in Yokohama.
George Tanasijevich, president and CEO of Marina Bay Sands, operator of the Las Vegas Sands’ Singapore resort, said, “I don’t think (Akimoto’s situation) diminishes our interest in pursuing our opportunity here. We just let the process unfold, it is the government’s job and it doesn’t involve us. We stay focused preparing for the request for proposal.
Chris Gordon, president of Wynn Resorts Development, told the Nikkei Asian Review that any delay that might occur because of the indictments is “fine,” because “you don’t want to rush these things.”
Another Japan suitor, Melco Resorts and Entertainment Ltd., is reportedly cooperating with authorities as they enquire into casino bribery allegations. Local news media report that Melco’s Japan office was raided by authorities in late January, and documents were seized.
“We can’t comment on the investigation,” Melco said in a statement. “Akimoto visited but nothing illegal occurred. No perks such as meals or accommodations or entertainment were provided and no benefits were received.”
Prime Minister Shinzo Abe, meanwhile, has dismissed calls by opposition lawmakers and the public for an inquiry of the bidding process, or even a rollback of IR legislation, which was first approved in December 2016.
In related news, Zhengming Pan, CEO of 500.com, has resigned. The news was disclosed in a February 2 filing to the U.S. Securities and Exchange Commission. revealed that former director and had resigned, effective immediately. Tian Zhaofu was named as acting CEO of the Shenzhen-based sports lottery provider.
The filing stated, “Pan was also a member of the Strategic Planning Committee and Nominating and Corporate Governance Committee. The vacancies on these committees as a result of Mr. Pan’s resignation will be filled in due course.”
500.com gave no reasons for Pan’s departure, but he was close to the Japan bribery scandal. Six politicians are suspected of accepting money from 500.com, presumably to help grease its path to an integrated resort license in the country.
On December 31, Pan stepped down as CEO in what was then portrayed as a temporary measure to allow an internal investigation to be conducted without interference. At that time, Chairman Xudong Chen resigned and was replaced by Shengwu Wu.
