When you think of casinos, the first place that comes to mind is typically Las Vegas, with its heady neon lights and bustling nightlife. But more recently, luxury hubs in Asia like Macau and Singapore have distinguished themselves as emerging hotspots for lavish casino entertainment. Japan is a surprise contender in this arena, and it’s set to be one of the world’s largest casino destinations. But how did this development come to be?
Casinos in Japan: A brief history
To get a deeper understanding of this issue, it’s important to look at the history of casinos in Japan, as well as the legislation surrounding it.
The casino ban
Despite Japan’s long history of horse racing and pachinko pinball parlors, it hasn’t had the most agreeable relationship with casinos. In fact, it wasn’t until 2016 that the ban on these establishments was lifted. Before that, the law prohibited land-based casinos from operating.
But there was a loophole: an ExpatBets' feature on Japan notes that citizens could still play in online casinos with live dealers as long as the servers were based outside the country. This set the stage for a growing market of Japanese patrons eager for a shot to play at a real roulette wheel. And with the country’s recent “integrated resorts” law - the next step towards legal recognition of casinos – a framework of operation for casinos in Japan will be introduced.
What is the integrated resorts law?
“Integrated resorts” is nomenclature for a consolidated facility with hotel, conference, and casino and entertainment spaces. Taking a cue from similar establishments in Las Vegas and Singapore, former Prime Minister Abe Shinzo pushed for their legalization, saying they could create more jobs, spur foreign investment, and fortify the country’s tourism industry.
According to the law which cleared the Japanese parliament in 2018, international visitors won't be charged when entering integrated resorts. Japanese residents, on the other hand, will have to pay $50, and will be limited to three visits a week for a maximum of 10 per month. Furthermore, gaming areas in integrated resorts can only take up 3% of the total floor space in the establishment.
Despite these limitations and handicaps to patronage, foreign investors are seeing Japan as the next frontier for luxury casino entertainment.
The future of casinos in Japan
Not everyone is happy with the decision to legalize casinos, however. Nearly 71% of those who participated in a poll by Kyodo News said they wanted the government to review its plans to open casino gaming venues in Japan. A recent scandal involving Tsukasa Akimoto, a proponent of integrated resorts who is accused of accepting bribes from Chinese operators, hasn't helped the matter either.
Furthermore, the pandemic has stalled bidding proceedings to host the first three integrated resorts in the country. The central government recognizes that candidates have yet to finalize their applications in light of Covid-19. Originally planned for January 2021, talks have instead been rescheduled for the fall this year.
Still, multiple municipalities have already ventured to toss their hats into the ring. Among them are Yokohama, Osaka City and Osaka Prefecture, Wakayama Prefecture, and Nagasaki Prefecture. Meanwhile, Tokyo governor Yuriko Koike says the nation’s capital will “keep considering whether to apply” for an integrated resort.
With its economy leaning heavily on tourism, Japan has been hamstrung by the effects of Covid-19, with the Olympic games even under threat. Perhaps casinos - and the potential $8-billion annual revenue they could generate - could provide some much-needed financial stimulus to get the country back on its feet.
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