Jun 23 (newsonjapan.com) - With the goal of making Japan an Asian hub for gambling, the government has greenlit the first-ever casino facility in Osaka to open its doors by 2029.
This undertaking intends to drive up spending on tourism, locally and from overseas, as well as stimulate job creation.
With the introduction of new legislation in 2018, allowing casinos to operate within 'integrated resorts' (IRs), Japan was set to have its very first casino. Unfortunately, progress was hampered by a number of delays. Now, however, it seems the construction plan is gaining traction again. Let’s examine what we know about this decision so far.
The Position of Gambling Sector in Japan
Over a hundred years ago, Japan declared it illegal to partake in gambling activities with the enforcement of the Penal Code. This meant that even a fan-favorite game like backgammon was off the table. Fast-forward to today, and we see a casino boom in Japan – electrifying sports betting, lotto draws, Pachinko arcade games plus a variety of other entertainment opportunities such as poker and baccarat have become favored among locals.
The Japanese online gambling industry is experiencing a major boom, with the digital transformation and technological innovations leading the way. IMARC's research suggests that the market value for this sector is currently at $7.2 billion and projected to rise at an impressive CAGR of 6.3% in the next five years. This skyrocketing growth in Japan's online betting sector has made it one of the most lucrative markets around the world.
Online gaming activities subject to rigorous regulation from the Japanese government have proven beneficial in numerous areas. Namely, this has generated notable tax revenue, fueled employment opportunities, and enabled investment in social welfare plans.
Brief Intro about First-Ever Japan’s Casino
Despite being hampered by the hit of Covid-19 as well as a bribery allegation against one of the ruling party's representatives, the plans to create highly anticipated casino resorts on Yumeshima, an artificial islet signed off by Osaka Bay, have finally been approved. Having a budget of 1.8 trillion yen roughly equivalent to thirteen and a half billion dollars.resorts is set to be constructed.
This luxurious 5.3 million square-foot complex not only boasts a casino, but also other amenities, all as part of the "integrated resort" experience. These include but are not limited to:
- Hotel
- Conference center
- Exhibition facilities
- Theater
- Shopping mall
- Museum
Possessing the ambition of creating an annual turnover of 520 billion yen and enticing 14 million Japanese nationals and 6 million foreign guests per year, the resort is banking on gaming as its primary source of income. This is per the findings from its project documents.
Who is Behind the Project?
MGM Resorts International and Orix Corp, a local partner, achieved a significant milestone on April 14th. The duo received governmental approval to establish the first-ever casino in Japan. Both companies together hold a 40% percentage in the firm running the integrated resort.
The Kyoto government's records state that 20 companies have bought 20% more shares in the resort, hailing from Osaka-based big names like West Japan Rail, Kansai Electric Power, and Panasonic. Moreover, MUFG Bank and Sumitomo Mitsui Banking Corp are teaming up to finance the project with an impressive sum of 550 billion yen.
Challenges about Getting its First Casino
The announcement of the nation's inaugural casino has sparked mixed reviews from those in its community. On one hand, worries have been expressed concerning a potential rise in criminality and the susceptibility of citizens to addiction. On the other hand, it remains to be seen whether the opening of the casino will bring benefits or adverse effects.
A revelation by a recent survey conducted by the government in 2021 painted an alarming picture – 2.8 million or 2.2% of Japan's affluent population are dealing with a gambling addiction. Given the pressing issue at hand, support organizations against gambling addiction have gone on record to strongly oppose the Osaka project and voice their genuine worries about it.
On the other hand, significant steps are being taken to address any worrying dependency issues associated with the introduction of Japan's first casino. To this effect, all those who visit must pay a one-time entry fee of 6000 yen for every 24 hours spent in the establishment.
The government is intending to limit the number of visits Japanese high rollers can make. Moreover, if a person wants to, they can ask for their relatives to be prohibited from entering casinos.
Future Prospects of Gambling in Japan
With Japan boasting the third-largest economy globally, its lucrative gambling sector has been drawing a great deal of attention from around the world.
Japanese gambling remains one of the most profitable businesses in the country, with estimated annual earnings of nearly $20 billion. Forecasters at GoodLuckMate predict that its online casino sector will rise from its current level of $6.7 billion to over $10 billion in the year 2027.
Pachinko, a pervasive pastime in Japan similar to pinball, turned heads last year with a staggering 14.6 trillion yen in sales from the 7,600 parlors dotting the nation's landscape, amounting to 4% of Japan's total revenue. This data, courtesy of The Guardian, goes on to highlight a brilliant 2020 for this beloved game.
With exciting horse racing, speedboat competition, motorcycle and keirin bicycle events held across the country each year, gambling in Japan generates trillions of yen in revenue. As a result, 2029 will be a landmark year when the nation's first casino opens its doors; both visitors and locals are highly anticipating this momentous event.
