Country on cusp of recession
A plan to approve casino gaming in Japan is going nowhere fast. The country’s Integrated Resort Promotion bill, defeated in the ordinary legislative session last year, will not be on the agenda during this year’s Diet session, according to Forbes.
In fact, the publication reported, Mikio Tanji, chairman of Gaming Capital Management, an IR site may not be identified in Japan before 2019—and that may be the most optimistic timeline. Details of the bill that remain undecided include issues of foreign ownership and whether Macau junkets will be allowed to do business in Japan, he said.
Prime Minister Shinzo Abe has long supported the IR bill, but was opposed by Buddhist junior coalition partner Komeito, which held up the legislation.
“It would appear that Japan has missed the boat when it comes to casino gaming,” Spectrum Asia CEO Paul Bromberg told Forbes. “Legalizing gaming is not a major issue domestically, and there are more pressing matters currently facing the government.”
Despite little progress on the issue—and despite a softening economy that could prefigure recession in the country—interest remains high in Japan, where pachinko parlors reportedly generate 19 trillion (US$187 billion) a year, more than any pastime in Japan, according to the Diplomat. U.S. operators like MGM Resorts International and Wynn Resorts have looked at the market, and Fitch Ratings has estimated that two casino resorts in Yokohama, near Tokyo and Osaka, could generate roughly $7 billion in gross gaming revenues. Other possible locations include the skiing destination of Hokkaido and Nagasaki, home of the Huis Ten Bosch resort.
And according to a recent study on the matter cited by Kasuaki Sasaki, assistant professor at Nihon University College of Economics’ Gaming Academy, an integrated resort in Yokohama could be worth 414.4 billion yen (US$3.36 billion) to the local economy, and create more than 41,000 jobs.
“This fluid legislation status is disappointing to every stakeholder in Japan,” Deloitte Touche Tohmatsu’s Tsubasa Nishi said of the latest delay.
Daniel Cheng, senior vice president of business development for Hard Rock International, said the U.S.-based company still has high hopes for Japan. “Japan is the next Macau,” he said.
