It seems like Japanese gambling legislation is not going to take effect anytime soon but South Korean authorities are not wasting their time at all.
According to the initial plan, Japan was supposed to make the gambling activities legal, several casinos had to be established and they were believed to boost country’s revenue.
However, all plans were cancelled last Friday when the Prime Minister of Japan, Shinzo Abe, called a snap election. That put an end to all hopes for establishing attractive and most importantly, profitable casinos before 2020 when the Olympic Games are going to take place in Tokyo.
In other words, the snap election made the gambling legislation proposal impossible to pass in 2015, which means all investors who have already expressed interest in building a casino on Japanese soil have to wait until the bill becomes officially valid.
Members of Parliament said that budget and defense matters are among the main reasons for the suspension of the gambling proposal. The worst of all is that Japan is going to play host to the Olympic Games and thousands of tourists will visit the country but they will not be given a chance to participate in gambling activities.
Nevertheless, some politicians remained hopeful about the proposal to pass next year but the majority considered the legislation during 2015 to be absolutely impossible.
Apparently, Japan will lose a great amount of money because of the suspension. According to estimates, gambling activities were supposed to contribute to country’s coffers more than $15 billion every year.
And while Japanese authorities are trying to find the best possible solution for legalizing gambling as soon as possible, things in South Korea look pretty optimistic.
The annual revenue, generated from gambling activities during 2013, was well over $2 billion and according to several market analysts it will continue to grow. South Korea counts predominantly on Chinese players. Some luxurious and yet affordable venues offer special packages, including gambling activities, cosmetic procedures and a shopping spree, which makes them really appealing not only for Chinese tourists but for all visitors.
South Korea has a major advantage over Japan though. Is has already established the basis for developing the gambling sector while Japan is still at the very beginning of the process.
The first gaming and entertainment resort, based in South Korea, is expected to open doors within two years. A prominent Chinese investor has already announced that his company is interested in building another luxurious resort on South Korean territory.
And that is not all. There is another indication for the bright future of the local gambling segment. Sheldon Adelson, the CEO of Las Vegas Sands, announced that his corporation is also willing to invest in an impressive casino resort, located in South Korea. However, there is one huge setback and Adelson has to overcome it if he wants his future casino to be profitable.
The law, that forbids local people take part in gambling activities in foreign casinos needs to be abolished. The casino mogul has already taken actions towards letting authorities know that such a law will definitely have a disastrous effect on the annual revenues generated.
