Japan approved the bill to legalize landbased gambling venues on its territory, despite fierce opposition on behalf of the country’s Democratic Party. The much-debated bill was approved by the Cabinet Affairs Committee, which is the key parliamentary panel in the country.
The bill will enable Japan to open its first brick-and-mortar casinos, paving the way for an industry with billions of dollars in potential investments. Up to this point, it was illegal for landbased casinos to operate on the territory of Japan, which ranks as the third largest economy in the world.
The passing of the bill was met with a strong disapproval by Shoji Namba, a Democratic Party legislator and Chairman of the Cabinet Affairs Committee. Namba, who has a significant influence on the timing of votes on bills, attempted to prevent the ruling Liberal Democratic Party from passing the new bill, but his efforts proved to be unsuccessful.
After the bill was revised, it passed in both the upper and lower houses of Japan’s National Diet. However, the details concerning the so-called integrated resorts need to be laid in a separate implementation bill prior to building any gambling venues on the territory of the country. This indicates no landbased casinos will likely open doors in time for the 2020 Tokyo Olympics.
Members of Komeito, the coalition partner of Prime Minister Shinzo Abe’s Liberal Democratic Party, opposed the legalization due to concerns over money laundering and gambling addiction. However, the revised bill includes a duty to tackle problem gambling and addiction as well as a requirement to review the legalization within five years.
Satoshi Sakamoto was chosen by Konami Holdings Corp. as a head of a new Japanese company which planned to invest in casinos once the bill was approved. Sakamoto stressed the importance of creating integrated gambling facilities where guests can enjoy a safe and pleasant experience. He commented that if Japan is to welcome landbased casinos, it is essential to establish the best possible regulations as well as the systems and personnel to enforce them.
Up to this point, only gambling on horse, boat and bicycle racing was allowed in the country. The game of pachinko, which resembles pinball, fills a Japanese gambling niche comparable only to that of slots in Western countries. Pachinko has also spawned addiction among some of the population.
Opinion polls in Japan suggest overall the population appears to be skeptical when it comes to the new gambling bill. The polls indicate 44% of the public voted against the bill, 34% were undecided, and only 12% supported it.
Earlier this month, Komeito leader Natsuo Yamaguchi commented many Japanese people felt the discussion period for the bill had been too short. This can possibly explain the small number of people who voted in favor. However, with a majority in both the upper and lower houses, Prime Minister Abe no longer needs assistance from Komeito in order to pass legislation.
Key Japanese cities like Osaka and Yokohama are already rumored as potential places to erect the first integrated casino resorts. Major foreign and domestic companies, such as the MGM Resorts International, are already eyeing the opportunities the new bill can offer. MGM commented they are prepared to pursue a gambling project in Japan and have already dispatched a full-time development team in Tokyo.
