Japanese Casino Bill Clears Both Houses

Home » Poker News » Japanese Casino Bill Clears Both Houses

Friday, December 16th, 2016 | Written by Charles Washington

Japan has finally paved the way for a fully-fledged casino gambling industry, after both the country’s lower and upper houses of parliament voted in favor of a casino legalization bill. The government will now have one year to set up a framework dealing with the legislative aspects of the new law, as well as the specifics of how integrated casino resorts should be regulated and run. Measures will also need to be put in place on how to deal with any potential social problems arising from the new industry, such as an increase in the levels of gambling addiction.

Lower House Approval

In December, an important first step towards finally eliminating the ban on casino gambling was taken after Japan’s lower house of parliament, or House of Representatives, passed through committee a bill called the Bill For The Promotion Of Integrated Resort Facilities.

On Tuesday, December 6th, the “Casino Bill” then made its way from the panel review to Japan’s Lower House before sailing through successfully. After that, it needed to be voted in first by an Upper House panel and then the Upper House, with many skeptics speculating that the bill might have hit a roadblock there.

Upper House Approval

The following week, Japan’s Upper House panel subsequently rubber-stamped the piece of legislation, and on December 15th it was then passed by parliament. Following its approval, Union Gaming analyst Grant Govertsen, commented:

“This is a landmark occasion and should be a shot in the arm as it relates to investor sentiment in all gaming names that could be players in Japan.”

The Casino Bill

The Bill For The Promotion Of Integrated Resort Facilities, or the “Casino Bill” for short, was sponsored by a number of lawmakers predominantly from the country’s ruling Liberal Democratic Party. The legislation envisages the establishment of a set of guidelines and licensing regulations for integrated resorts, or large vacation destinations offering casinos, hotels, restaurants, shopping and live entertainment.

Boost for Tourism

Casinos in other Asian markets are doing very well in the wake of the Chinese crackdown on Macau’s casinos that has led to the country’s elite VIP high rollers seeking out new places to gamble. As well as catering to the gambling needs of the country’s 127 million population, proponents of Casino Bill say that legalizing casinos would help attract tourists to Japan, and so boost the country’s economy. Commenting on its potential, Warwick Bartlett, CEO of Global Gaming and Betting Consultants, explained:

“As a tourist destination Japan has a lot to offer and casinos will complement a large menu of attractions and infrastructure that is already in place. Japan could start to become a serious global player in gambling tourism and might even pose a threat to Macau and Singapore.”

In fact, some analysts, such as Morgan Stanley, believe the market could reach $20 billion once established, while other analysts place that figure nearer to $40 billion.

In the meantime, there is no shortage of international companies lining up to apply for a casino license, with Wynn and Las Vegas Sands already having signaled their intentions to invest up to $10 billion each on building a mega-resort. Other operators that are expected to follow suit include MGM, Genting, Crown, as well as local Japanese companies such as HIS, Resorttrust, and Tokyotokeiba.

While Japan would liike to see its first casino open before the 2020 Tokyo Olympics, some analysts believe that the opening date will actually be nearer to 2032.

Potential Problems

Not everyone was happy to see the “Casino Bill” succeed, though, and a group of lawmakers staged a walkout in protest of the bill when it initially passed the lower house. Representatives of the Japanese Community Party and some of Japan’s conservative parties also believe that legalizing casinos will lead to social problems in the future.

One such worry is that organized crime will be strengthened by legal casinos, with criminals using casino businesses to launder their money. Another fear is that casinos will contribute to gambling addiction. Currently, slots and pachinko are legal in Japan, and it’s estimated that roughly 9 percent of Japanese men and 2 percent of Japanese women are addicted to gambling. Lawmakers have expressed their concerns that casino gambling will just create more opportunities for people to gamble recklessly.