News On Japan

What Will Japan’s First Casino Mean for Gambling?

Dec 06 (News On Japan) - Japan has an inconsistent stance on gambling. Many forms have been outlawed and taboo for eternity. However, the Japanese pinball-style game pachinko has been permitted simultaneously.

That said, the latest gambling news from Japan states it will open its first-ever casino where players can wager real money in 2030. Will this radically change the gambling landscape in the country?

Osaka Set for Gambling Influx

While Tokyo receives plaudits for many records and accolades for Japanese tourism, Japan’s first-ever casino will be in the western city of Osaka. In many ways, the city is the perfect home for a casino. Osaka has been known as a city for notoriety, pushing the envelope regarding broader national opinion. Citizens of Osaka can see the lighter side of life and be a lot more relaxed. Skirting the law can come into play, too. Away from the bright lights, Nishinari is a part of the city decked out with izakaya bars, taverns serving modest Osaka dishes, and, if you want to find it – Yakuza-run establishments where you can gamble illegally. However, it is ill-advised.

Osaka has been known for having a significant foreign influx from other countries, with countless Koreans and Chinese people moving to Japan for a different life. In addition, there’s a sizeable Western influence on America-Mura. As such, gambling is one idea which may have stemmed from overseas.

Divided Opinion Across Japan Ahead of 2030 Opening

The Japanese public is relatively divided on the idea of a casino. Polls taken across the country between 2020 and 2022 suggested that 60% of the population opposed its construction. Those who took the time to explain their feelings often cited that it could increase crime, gambling addiction and other negative connotations around gambling. Despite this feeling, Japan is widely seen as the fourth biggest gambling economy, with around 40 million pursuing gambling interests regularly.

However, on a more local level, the people of Osaka are more welcoming to the idea. In 2023, a poll run by Nikkei, the Japanese business newspaper, stated that 45% of the local population favored hosting the new casino facility. The local sentiment is that it will bring a lot of money to the city (an expected 1.14 trillion yen annually) and create a lot of jobs in the process, with around 15,000 already being lined up for future workers.

Will Other Casinos Open in Japan?

The conversation about opening casinos in Japan has been going on since 2019 when multiple companies wanted to profit from the Tokyo Olympics. The pandemic slowed progress, but this is still a long project, as this casino won’t be ready until 2030. However, this is still a good sign for other companies wanting to move it.

This new casino will be operated by a firm called Integrated Resorts Osaka, or, casually, IR Osaka. This consortium is made up of two other companies: ORIX, a Japanese financial services company, and, most importantly, MGM Resorts, the luxury American casino brand. The allowance of foreign brands to operate gambling activity in Japan is a massive green light for other companies who want to trade there.

If foreign casino brands want to do so, they must partner with a reputable Japanese firm and have enough capital to persuade the government to allow them to trade there. Of course, this process takes time as the first one in Osaka won’t be up and running until 2030 – but there is progress. Before it was decided that this casino would be in Osaka, the local governments of Tokyo and Yokohama expressed interest in having it there. Could those localities find their deal with other foreign casino brands?

Will Japan Promote Casinos to Tourists?

Those who already gamble in Japan will appreciate that they pay tax on their winnings above a specific threshold – and often pay a fee as a tax when placing a bet on the lottery or sports bet. These fees are designed to keep the industry afloat, pay the government and discourage problem gambling.

In 2021, the ruling government head tax commissioner, Akira Amari, stated that tourists will NOT pay tax on their winnings when they visit a Japanese casino. At the time, he probably expected that the casino would open much sooner than 2030, but the legislation remains. This makes it incredibly enticing for foreign tourists – but less exciting for Japanese residents, as they will have to pay tax on winnings, although the details are not finalized yet, so you can read more gambling news stories here to find out up to date developments on this issue.

There is also a compulsory 6,000 yen tax for Japanese nationals entering a casino. These additional fees for Japanese citizens and residents are designed to prevent people from problem gambling by making it less appealing.

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