Strong addiction measures called for
When Japan finally launches legal casinos in the years to come, it’s likely the industry will not include clusters of casinos reminiscent of the Las Vegas Strip, reports the Asia Gaming Brief.
Investment banker Morgan Stanley says Japanese will probably nix Strip-like developments, allocating just one casino license for each of the chosen markets.
Analysts Praveen Choudhary, Alex Poon and Thomas Allen say they took their cue from Japan’s Office of Integrated Resort Regime Promotion, also called the IR Promotion Secretariat, which is advising the government on casino policy.
The idea of an Osaka Strip a la the Vegas Strip and Cotai Strip was part of an April white paper from Global Market Advisors LLC. GMA said the concept was introduced by the Clairvest Group, a Toronto-based private equity management firm; and U.S. casino operator Hard Rock International Inc.
Morgan Stanley also says Japan may prohibit VIP junkets in its casino industry, which could mean “either much smaller VIP business, or very high debt provisions” for casino operators, the analyst team wrote.
Japan may also ban the sale of casino chips by personal credit cards to all but foreign customers, and have no automated teller machines for cash withdrawals on casino floors, reported GGRAsia.
Finally, Japan’s citizen number identification system could be used to keep tabs on Japanese nationals and foreign nationals who visit casinos. That’s a telling detail, and could mean Japan is receptive to locals gambling at its domestic casinos. The possible use of the “My Number Card” system is “one of the clearest indications so far that Japan might stop short of an outright ban” on locals gambling, reported the news outlet. According to the Yomiuri Shimbun newspaper, lawmakers may limit the number of weekly and monthly casino visits, presumably by locals.
Above all, a bill to address gambling addiction must be formulated and approved. The Motley Fool reports that Japan may have higher rates of gambling addicts than other countries: up to 5 percent of the population, compared to 1 percent elsewhere.
There’s been strong opposition to the legalization of casinos among Japanese citizens; polls show as many as 44 percent of the people are against it. Opposition is strong despite—or perhaps because of—the legal pachinko industry in Japan. Some 11,000 pachinko parlors bring in $200 billion annually, though the pastime is falling out of favor among the younger generations. Betting is also permitted on sporting events such as horse, bicycle, and powerboat racing.
Needless to add, casino operators will be required to restrict the entry of self-declared gambling addicts and those whose families declare them to be addicted. People under the age of 20 and known members of organized crime groups will also be prohibited from entering casinos.
