Gov’t gearing up to launch casinos in Japan

March 8, 2017

TOKYO- The Japanese government has launched legal preparations to introduce casino gambling in Japan in hopes of further boosting tourism.

After a law to lift a ban on casinos took effect on Dec. 26 last year, the government needs to promote the creation of “integrated resorts” that include hotels and restaurants, as well as convention, gaming, shopping, theatrical and other facilities.

The enactment of the casino promotion law led the government of Prime Minister Shinzo Abe to reopen an office on Jan. 6 to draw up legislation to implement integrated resorts, setting out detailed rules on casino operations, including the selection and oversight of operators and entry restrictions. Under the law, the government is required to work out such legal rules within a year of the law’s effectuation.

The government aims to submit the integrated resort implementation legislation to an extraordinary session of the Diet, Japan’s parliament, expected to be convened this autumn.

The government has also set up a panel at the Ministry of Health, Labor and Welfare to prepare a comprehensive package of legal measures to tackle gambling addiction risks, amid serious concerns voiced by both ruling and opposition lawmakers over the creation of integrated resorts.

Legislation to address gambling addiction, also covering “pachinko” pinball games as well as publicly run horse racing and similar contests, is planned to be submitted to the current Diet session, ahead of the integrated resort implementation legislation.

After the implementation law takes effect, casinos will be opened at locations managed by local governments that apply to host them and are chosen by the central government.

“Initially, there will be two or three casinos,” said a leader of a group of lawmakers promoting the establishment of integrated resorts.

With preparations to open casinos expected to take at least five years, casino gambling is unlikely to begin in Japan before the 2020 Olympic and Paralympic Games in Tokyo.

The government, which has set up a target of attracting 60 million foreign tourists to Japan a year by 2030, sees integrated resorts as a key to avoiding a decline in visitor numbers after the 2020 Games.

But integrated resorts already exist around Japan, including in Singapore, Macau and South Korea. “Casino markets in Asia are saturated and are competing fiercely to lure wealthy Chinese,” an analyst said.

Integrated resorts in Japan, therefore, will need to promote “Cool Japan” and other attractive programs to differentiate themselves from Asian rivals.

In the process of preparing the integrated resort implementation legislation between the ruling Liberal Democratic Party and its junior coalition partner Komeito, one controversial issue will be whether to impose strict restrictions on entry to casinos, such as the use of admission fees and bans on individuals at the request of their families.

There is strong concern about gambling addiction within Komeito, which is backed by major lay Buddhist organization Soka Gakkai.

Komeito was split in voting on the casino promotion law last year. The party needs to be united behind the implementation legislation, said Yoshio Urushibara, chairman of the party’s Central Secretariat.

For their part, LDP lawmakers promoting the launch of casino gambling are opposed to strict restrictions, stressing that casino revenues will be the financial base of integrated resorts.
Jiji Press