Casino restrictions in Japan could hurt revenue
Legal limits for casino development in Japan could reduce gaming profitability.
Japan.- The casino industry in Japan is one of the most expected projects in the world due to its highly potential and profitability. However, experts consider that the industry’s success would depend on local demand for gaming, which could be very limited by the national government. Japanese legislators aim at reducing local presence in casinos to prevent problem gambling.
“Stringent curbs here [in that area] could further decrease the revenue opportunity,” said analyst Chelsey Tam from investment research firm Morningstar Inc., according to GGRAsia. The assessment was released by the international company last Thursday, based on local analysis about upcoming Japanese industry.
The same company had released a previous analysis in June, stating that initial licenses in the market would set a “US$25-billion” market opportunity – US$19 billion in gaming and US$6 billion in non-gaming – with “roughly 20 percent return on invested capital for facilities opening in 2024, assuming no major restrictions on local gambling.”
Meanwhile, the ruling party of Japan has confirmed another delay in IR Implementation Bill’s approval. The Japanese Prime Minister Shinzo Abe is dissolving the extraordinary Diet session scheduled for later this month in order to call a snap general election for October 22 or October 29.
