The fallout continues from a corruption scandal related to the development of integrated resorts in Japan. Last week, on the first day of the ordinary Diet session, four opposition parties called for the repeal of the 2016 IR Promotion Act and the 2018 IR Implementation Act—in short, a complete reversal of the legalization of casino gambling, according to Asia Gaming Brief.
Prime Minister Shinzo Abe, who battled for IRs as a way to boost tourism, is in no mood to roll back the legislation, and insisted that the government “is going to set up the foundation of the tourism nation at full speed in 2020.
The government is strongly committed to achieving the goal of 60 million inbound visitors in 2030.” The Japan Times reported that Abe’s speech on January 20 was interrupted at least a dozen times by LDP opposition, “with shouts rising to a crescendo when the prime minister brought up the promotion of casino resorts.”
In Osaka, considered a prime spot for one of the first three IRs, the government is trying to avoid any hint of possible impropriety, reported Inside Asian Gaming; the prefecture and city have issued strict new guidelines forbidding even short-term meetings between their staff and potential gaming operators.
Mayor Ichiro Matsui said, “In the comings and goings of politicians, you need to take responsibility for your own actions. Receiving donations and putting it into your pocket instead of declaring it is a violation of the law.”
Osaka Governor Hirofumi Yoshimura said the arrest of Rep. Tsukasa Akimoto on charges of bribery on Tuesday that, “This is not a problem with IRs, but a problem with the representatives. This scandal and crime has absolutely nothing to do with Osaka’s ongoing IR project.”
A total of six Japanese lawmakers have been implicated in the corruption scandal; all are accused of taking bribes from China-based gaming operator 500.com Ltd., which had sought to win an IR license in the country.
Meanwhile, a United States-based law firm says it has filed a class action there on behalf of public investors in New York-listed, alleging securities fraud by 500.com.
The complaint, filed by Block & Leviton LLP in the U.S. District Court in New Jersey, claims that 500.com “concealed from investors that its executives were bribing Japanese lawmakers in order to secure development rights for a casino resort project in Japan”. People linked to 500.com have been accused of involvement in a bribery scandal tied to lobbying for one of a possible three casino licenses to be awarded in the first round of liberalization in that country.
The law firm noted in a Thursday press release that the 500.com stock price fell more than 12 percent in a single day of trading. That, according to the law firm, happened after 500.com announced on December 31 that it would investigate the bribery claims; and reported the resignation of its chairman and the temporary departure of its chief executive pending the results of the internal probe.
“These allegations of corruption are very serious and our investigation will focus on whether illegal activity occurred which resulted in investor losses,” said Mark Delaney, the attorney leading the investigation, as quoted in a press release from the law firm.
Wakayama Governor Yoshinobu Nisaka of Wakayama Prefecture—one of the most vocal regional areas preparing an IR bid—has confirmed that the scandal won’t slow down Wakayama’s IR plans.
Governor Nisaka noted this week that there has been no connection between the Chinese company implicated in the corruption allegations and Wakayama’s IR project.
Asked whether the region’s IR ambitions should be put on hold in light of the scandal, he replied, “If there was a similar incident involving public construction, would you stop all construction in its tracks?”
Regarding the schedule, he added, “There will be likely be no delay.”
