Japan – The World’s Next Top Gambling Destination?
Posted by Harry Kane on Tuesday, November 8, 2016
In recent months, several leading names in the casino industry have expressed their interest in building casino resorts in Japan. Now Hard Rock International Inc. has joined the party, stating they are also interested in operating an integrated casino resort based in Japan. However, casino gambling is currently illegal in the country – so what is going on?
In 2013, the Integrated Resorts Promotion Bill was proposed, which would allow two integrated casino resorts to be built in the country, and would set up the framework for their regulation. However, despite supporters of the bill presenting it several times for consideration, it has yet to have made any serious progress. This is because other issues took precedence, meaning the discussion over casino legislature was side-lined.
There has also been distinct opposition to the proposal from the Komeito Party, who are a coalition partner to the Liberal Democratic Party, who rule the country. Members of Komeito have argued that legalising the casino industry is problematic, and would not necessarily be a good move for Japan and its residents. They have claimed that the risks and problems that gambling causes mean that legalising gambling would not be in the country’s best interests.
However, pro-casino legislators in the country recently confirmed that they would make further efforts to push the bill through for consideration at the current parliamentary session, which is due to close this month. Supporters of the bill have also found renewed optimism in last month’s appointment of Toshihiro Nikai as Secretary General of the Liberal Democratic Party. Nikai is known to be a supporter of the casino bill, which according to many signifies a higher probability that the proposal to legalise casino gambling will be successful.
The potential opening of a new market has caused ripples in the casino industry, with several key players expressing an interest in expanding their business in the country. Last week, an integrated resorts and gaming conference took place in Tokyo. It was attended by executives from some of the largest operators in the world, including MGM Resorts, Las Vegas Sands, Wynn Resorts Ltd and Hard Rock Café International. The execs were invited to pitch to local firms and politicians on their plans if the legalisation of gambling bill came into force. Following this conference Hamish Dodds, CEO of Hard Rock Café International said the company was prepared to make a major investment in the Japanese market if gambling became legalised. “The feeling we get is that this is more likely to happen now” said Dodds.
James Murran, CEO of the Las Vegas based casino operator MGM Resorts International indicated they could invest up to $10 billion in a luxury integrated casino resort. The Chief Executive explained that the investment would be made into a multi-purpose resort, incorporating not only casino gambling, but also hotels, retail, restaurants, bars, cafes, convention facilities and more. Las Vegas Sands has also indicated their interest in investing $10 billion to build an integrated resort, should they be able to gain a gambling licence to operate in Japan.
It is easy to understand why the major casino operators are expressing interest and excitement in the possible opening of the Japanese market. According to analysts, casino revenue in Japan could be from $10 billion – $40 billion, which could make it one of the world’s top gambling destinations.