Macau integrated resort operator Melco Resorts & Entertainment is now ensnared in Japan’s bribery scandal that erupted late last year and caught up high profile political figures, including a former Senior Vice Minister responsible for drafting a government policy for the introduction of casino-style gambling in the country.
According to reports from multiple Japanese outlets from late last week, the Tokyo District Public Prosecutor’s Office raided the office of an unidentified Macau casino operator. Information surfaced later on that the raided office belonged to Melco, which has long been interested in obtaining a permit to build an integrated resort with a casino on the territory of Japan.
Authorities visited Melco’s office in Tokyo on January 17 and 20. It is understood that certain documents were seized and that the company was considered “a possible party to bribery.” The Public Prosecutor’s Office is currently reviewing all the materials seized in the recent raids.
In December, Japan was hit by a massive bribery scandal that involved lawmakers from the country’s ruling Liberal Democratic Party (LDP) as well as from opposition party Nippon Ishin no Kai.
Former LDP member Tsukasa Akimoto is the primary political figure to be investigated in relation to the scandal. Mr. Akimoto was arrested in late December over suspicions that he took monetary bribes of around JPY10 million from Chinese online sports lottery operator 500.com to help the company win a casino license in Japan. The lawmaker was rearrested on January 14.
Melco’s Involvement in the Bribery Scandal
Melco is among the major international casino and hospitality companies to pursue expansion in Japan’s nascent casino market. Aside from the recently raided Tokyo office, the company also runs offices in Osaka and Yokohama.
As revealed by Tokyo prosecutors, Mr. Akimoto accepted cash he was offered by 500.com around late September 2017. Back then, the lawmaker as well as the rest of Japan’s political life was preparing for the snap election called by Japanese Prime Minister Shinzo Abe, and the money he took were supposed to be used by him to fund his political campaign.
However, political donations from foreign individuals and/or organizations is illegal under Japanese law.
500.com also covered the expenses for a trip to Hokkaido Mr. Akimoto and his family took in early February. In addition, the company invited the embattled lawmaker to its corporate headquarters in Shenzhen. During his trip to China, Mr. Akimoto was understood to have also visited a casino in Macau.
It has now emerged that the casino he visited was operated namely by Melco. Asked by Japanese media outlets to comment on the recently leveled allegations about its involvement in the bribery scandal, Melco said in a statement from late last week that “Akimoto visited [one of its casinos in Macau] but nothing illegal occurred”
Japan’s casino bribery scandal prompted fears that the process of bringing integrated resorts with casino floors would be delayed significantly. A Basic Policy on casino gambling drafted by lawmakers in September was expected to be ratified this month.
Commenting on the matter, Prime Minister Abe said recently that the arrest of Mr. Akimoto was “very regrettable”, but his administration would proceed with its integrated resorts plan. Japan’s top official further noted that “integrated resorts involve international conference and exhibition halls, as well as large hotels” and that “they are entertainment facilities that will be enjoyed by families and help Japan become a country of advanced tourism.”
It is understood that the Basic Policy on casino gambling is now being re-worked by lawmakers to include provisions aimed at tackling bribery and specific regulations that would prohibit certain communications between representatives of the casino industry and lawmakers.
The policy is now due to be released in February. Prime Minister Abe said that despite the delayed publication of the policy, the overall timeline for awarding the initial three casino licenses up for grabs to their preferred holders will remain unaffected and the issuance of said licenses will still happen in the late summer of early fall of 2021, as originally planned.
Source: Melco’s Tokyo office raided by Public Prosecutor as Akimoto scandal deepens
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