The construction of luxury integrated casino resorts has turned into the latest big trend in the Asia-Pacific region, known to be the home of high roller casino players that are happy to spend a big portion of their fortune on gambling. Macau, the world’s gambling mecca, the Philippines, and Singapore are among the jurisdictions that have seen the integrated resorts model prove to be one that really attracts deep-pocketed visitors.
Japan, on the other hand, has remained one of the few, if not the only, developed countries to not host casino venues within its borders. And many believe that if the country eventually legalizes casino gambling, it will not take long before it secures a large piece of the industry’s pie.
Efforts have been made for the adoption of a law that would allow for up to two integrated resorts to be built in major Japanese cities. However, more pending issues and legislative opposition have prevented this from happening multiple times over the past several years.
According to recent reports, proponents of the idea will renew their push for legalizing casinos in the country. An extraordinary session of the National Diet, or Japan’s Parliament, may include the casino topic among the matters to be discussed by legislators over the next two months. The session is set to begin on September 26 and will likely be concluded late in November.
Here it is important to note that a bill – the Promotional Integrated Resorts Bill, was first submitted to the Diet late in November 2013. Although the proposed legislation has always been backed by Japanese Prime Minister Shinzo Abe and the leading Liberal Democratic Party (LDP), it could never gain much support from Komeito, the other major party that comprised the country’s governing coalition up until recently.
However, earlier this year, the LDP secured an outright Diet majority without the Komeito party as part of the ruling coalition, which certainly bodes well for the potential renewal of the casino effort. And even though, the integrated resorts bill will probably gain momentum if re-introduced, Japan is not likely to see its first casino launched before 2023.
The reason for this hides behind the fact that the Promotional Integrated Resorts Bill will only pave the way for the introduction of another bill, with that one being concerned with the regulation of the country’s casino industry. No one can project how long it would take before the second legislation is reviewed and passed by Japanese lawmakers. Given the fact that the legalization of casinos requires for the country’s Constitution to be amended, the process will certainly not be one to be quickly completed.
When first introduced, the integrated resorts bill suggested that two major hotel and casino complexes will be launched by 2020 when Japan is set to play host to the Summer Olympics. Given the multiple failures for the proposal to be properly taken into consideration by the Diet, this plan seems to be impossible to be materialized.
Although it is still unclear when Japan will legalize casinos within its borders, many are convinced that the country’s casino market will quickly turn into one of the largest in the world with estimated annual revenue of $40 billion.
Major casino operators like Las Vegas Sands Wynn Resorts, and MGM Resorts International have already expressed interest in building multi-billion integrated casino resorts in Japan, seeing a great potential in turning a profit from their endeavors in the country.
With more and more reports emerging that Japanese legislators will make yet another push for legalizing casinos, Las Vegas Sands CEO and Chairman Sheldon Adelson said at the recent opening of the company’s latest Macau-based property – The Parisian Macao, that they will certainly be among the candidates for the right to build a casino in Japan. Mr Adelson further hinted that their integrated resort there, if they get to building it, of course, will be just as iconic as Las Vegas Sands’ other properties.
As already mentioned, the Japanese casino effort has always been favored by Prime Minister Abe. The country’s top official believes that a legalized casino industry will help Japan improve its overall economy and tourism sector. When assuming office, Mr. Abe put forward the ambitious plan for bringing international tourist visits to 20 million per year by 2020, or right ahead of the 2020 Tokyo Summer Olympics.
Although it is not likely for Japan’s first casinos to open doors prior to or shortly after the Olympic Games, the gambling venues will probably attract more international visitors and improve the country’s tourism industry. According to latest figures released by the Japan National Tourism Organization, as many as 2.3 million international tourists entered Japan in July 2016, which is 19.7% up from the same month of the previous year.
In addition, it is also important to note that Chinese visitors represented the largest portion of the overall figure posted. There were 731,400 people from China to visit Japan in July 2016. This is a particularly important piece of information given the fact Chinese tourists are known to be among the region’s biggest spenders, particularly when it comes to spending on gambling options. Attracting such a high-value gambling demographic certainly bodes well for any casino industry.
