Japan’s IR bill to be submitted on April 27

The ruling coalition in Japan expects to submit its bill to regulate integrated resorts on April 27th to get the industry regulated as soon as possible.

Japan.- Liberal Democratic Party official Chikako Ikeda revealed that a bill to regulate integrated resorts (IRs) in Japan will be submitted on April 27th. The ruling coalition wants to get the regulatory frame for the industry ready by the second half of the year and expects to enact rules on entry fees and other matters for casinos in the current Diet session.

The casino industry was legalised in 2016 but still needs to get further legislation regarding where they will be located and how IRs will be developed. According to the latest draft, an upper limit on casino floor will be set by the government but the level and when the cap will be set remains unclear.

The coalition party has agreed on some key points like an upper limit of three per cent of total area of the resorts, a 30 per cent tax on casino revenue, an entry fee of €45 for residents of Japan and an initial cap of three casino sites nationwide.

According to analysts, international operators like Las Vegas Sands or Melco are likely to be benefited from the decision to set the floor space cap later this year.

Analysts said the decision to set the floor space cap later would likely be a positive for a host of global casino operators looking to enter Japan, such as U.S.-based Las Vegas Sands Corp and Macau’s Melco Resorts & Entertainment Ltd.

Despite the enthusiasm, the clock is ticking, and the government has until June 20th to pass a bill before the current Diet session comes to an end. However, Japanese brokerage Nomura has said that Japan will likely pass its Integrated Resorts Implementation Bill during the second half of this year or the first half of 2019.