Japan starts public debate on casinos
The Asian country will begin the open hearings over recommended guidelines to regulate major integrated resorts.
Japan.- The debate to discuss Japan’s efforts to legalise the casino industry goes public today, as the open hearings will take place in order to determine proper regulations to implement on major integrated resorts. International operators like MGM Resorts and Caesars Entertainment are among the potential bidders.
The Japanese government is assessing regulations that could be imposed to the gaming industry as more than half of residents are against the implementation of integrated resorts in the territory, Straits Times reports. The latest rumoured rules seem like are slowly convincing investors and casino operators as they thought that the guidelines would hurt their growth potential in the country. International operators are patiently waiting for what could be one of the most profitable industries in the world.
Steven Tight, president of international development at Caesars Entertainment, said that the common goal for the company is to see the introduction of world-class integrated resorts in Japan that drive economic, tourism and employment growth. “The government policymakers should ensure that the legislative framework doesn’t inadvertently hinder these aims.” The companies will also have the chance to express their opinion on the subject during the public comment period that will last a month, the news outlet said. Meanwhile, the operators will be paying attention to government decisions regarding floor space, taxes and locals.
“There’re just a lot of things the government could get so wrong that gaming companies will decide it’s not a worthy investment,” said Seth Sulkin, chair of a task force on integrated resorts with the American Chamber of Commerce in Japan.
As an analyst at CLSA in Tokyo said, Japan basing its casino system in Singapore could be a little bit off as the latter has a significantly smaller population, therefore a small venue with approximately 15.000 sq m of casino space and a heavy flow of foreign visitors could be contradicting, said Jay Defibaugh. “It does strike me as being out of line with what the local market can take on.”
Poker and sports betting sectors could also be banned in new Japanese integrated resorts. Casino regulation would only allow gaming options that “businesses can manage in a fair manner, can only be played within IRs and those in which participants can win or lose only by chance,” an article by local news outlet The Mainichi reported earlier this week. Local experts have estimated that the upcoming Japanese casino industry will generate gross gaming revenue (GGR) of US$7 billion per year if it includes two major integrated resorts.
