Sep 12 (News On Japan) - Japan’s controversial first casino project is moving ahead despite reports that tourism is on the slide.
In addition to potentially boosting tourism revenue, the new casino is also great news for Japanese consumers who like to gamble.
Current gambling opportunities in Japan are limited with the only reliable online casinos for Japanese gamblers available from offshore operators. Gambling expert Hiroko Ishihara explains the ambiguity surrounding online casino regulations, with no specific regulations or provisions in place to prohibit the use of offshore operators.
Japan's Current Gambling Laws
Chapter 23 of the Japanese Criminal Code prohibits gambling operations and participation unless specific licenses have been granted. Horse racing, some motor sports, football pools (toto), and a state lottery are permitted.
The legalization of casino gambling was approved in 2018, with three integrated resort licenses available. The Casino Administration Committee was created by the Japanese Government in 2020 to oversee casino operations.
Where and When Will Japan's First Casino Open?
The proposed Osaka casino project has seen $8.1 billion of investments with construction projected to be finished by 2030. The resort is to be built on the reclaimed island of Yumeshima in Osaka Bay.
The artificial island will be 960 hectares in size and is set to host the World's Fair and Expo 2025. Its creation was part of the 1988 "Technoport Osaka" project that saw a total of 3 artificial islands created.
Transportation to the island is possible via the Yume Saki tunnel and Yumemai Bridge. A proposal for the expansion of three rail lines to Yumeshima’s station, the Sakurajima Line, Osaka Metro Chuo Line, and the Keihan Nakanoshima Kine has been made in anticipation of the integrated resort.
The construction of the integrated resort will include a shopping mall, hotels, conference center, ferry terminal, and museum. The location will also boast a helipad which will welcome high rollers to the new casino.
Delays to government approval set the project back by a year after initial projections of a 2029 completion date. Another issue to hit the project is rising development costs with disruptions to supply chains and inflation having a significant impact on the investment needed.
The ambitious project has the potential to improve Japan's tourist industry, but it has still struggled to gain overwhelming support with many members of the public remaining skeptical.
Despite government approval, it has still made moves to protect citizens by imposing a $42 entry fee. This will not be imposed on tourists and only foreign residents and Japanese citizens will have to pay this.
How a Japanese Casino Could Help with Tourism
The construction of the Osaka integrated resort will be a major boost to the local economy, generating thousands of jobs during its creation and when it is operational.
As well as employing thousands, the project is set to attract visitors that will help the country's tourism industry. Early estimates suggest the resort could earn approximately $3.6 billion per year, with the majority coming from its gaming business.
Local businesses will also benefit from the rise in visitors, and projections suggest domestic visitors could total 14 million, while international visitors could hit 6 million.
The integrated resort is a joint venture between Orix Corp and MGM Resorts International which both have a 40% stake. The remaining 20% is shared between a further 20 companies and MUFG Bank and Sumitomo Mitsui Banking Corp are the major financers of the resort.
Any project of this size that requires regulatory changes will always have its detractors, but the potential to stimulate the local and national economy and help Japan’s tourist industry should help to change some minds when it is active.
