As Japan is getting ready to inaugurate the casino industry, the local government is contemplating the regulation of gambling.
Japan.- The government of Japan is assessing the restriction of existing gambling modalities in the country, such as racetracks and pachinko parlours. The measure is part of an attempt to regulate the industry before casinos start operating in the country.
As reported by the Straits Times, Japan’s players gambled approximately US$210 billion at pachinko parlors in 2015. Even if it’s reported that the market is reducing its activity the number represents 4 percent of Japan’s gross domestic product. The measure that is set to control the activity in order to help with problems related to gambling, includes the regulation of of pachinko operations, and the banning of credit-card machines that give away loans in racetracks.
Associate professor in the department of international tourism at Toyo University Kazuaki Sasaki, said: “Companies in any sector prefer to regulate themselves – being bound by legislation is bad for business. Although the increase in costs will hurt the industry in the short term, they’re necessary to ensure its long-term survival.”
Initially there will be only three licenses issued in Japan, which will be announced in two years. Credit-debt watcher Fitch Ratings sported that gambling jurisdictions across the Asia-Pacific region will not likely be affected by the future opening of multi-billion dollar casinos in Japan. Worries about casino cannibalisation in the region are apparently unfunded since the firm says it won’t be triggered. On the other hand, Vicky Melbourne, the ratings agency’s head of Industrials, Property and Consumer for South and Southeast Asia, explained that the outcome of each gambling jurisdiction depends on the products it offers in their respective area.