Japan, never one to do anything by halves, announced an ambitions quest in 2016 to increase tourism by a mammoth 67% in the proceeding five years.
Their leading player was to be that of integrated casino resorts to cash in on the huge financial return their neighbors have been receiving over the years. With gambling widely engrained in Japanese culture, Prime Minister Shinzo Abe was extremely keen to assist in the legalization of casinos and the monetary rewards that follow.
Fast forward to 2021 and with both the resignation of the Prime Minister and a certain global epidemic taking a huge toll on this project, naturally the goal has been delayed. But just how far the goal posts have been moved and what we can expect from Japan in the future is what we're interested in. Could Japan take China's crowning glory of casino capital of the world?
What is the IR Goal for Japan?
Taking up where Shinzo left off, new Prime Minister Yoshihide Suga has made it perfectly clear that he remains committed to the cause of three integrated resorts nationwide. The four cities battling it out to host such tourism magnets are Osaka, Yokohama, Nagasaki and Yokohama and with the 2025 target sliding by the wayside last month, further delays appear inevitable.
And by integrated resorts (IR's), Japan has a Las Vegas theme directly in their sights. Huge complexes that incorporate world class casinos with hotel and conference facilities, shopping malls and restaurants/bars. Dedicated areas, specifically targeting Asia's extensive casino-gambling market, to boost local and national tourism numbers and increase revenue.
With no such resorts existing in Japan at present, the initiative is a bold one, with extensive regulations and laws required to write up casino licenses. But the lure of casino tourism is extremely hard to ignore, especially in Asia where gambling and casino income is highest. And with Japan steering down a barrel of soaring national debt over the past couple of years, that financial boost is crucial to the world’s third largest economy.
The Long Road to Casino Legalization
Countless red tape, political upheaval and a country steeped in tradition are just some of many obstacles on Japan’s path to having a functioning casino license. 2018 saw Japan’s Diet (their bicameral legislature), pass the Integrated Resort Implementation Bill. This has seen local authorities join forces with foreign casino operators to bid for one of the prestigious three casino licenses up for grabs.
Currently, COVID-19 has all but put a halt to further ongoing submissions, with all major players suffering setbacks to their applications. But with local government partnering with strong interest from the private sector, the launch is all but inevitable. None-the-less, with 53% of the country claiming to be worried about a future rise in gambling addiction, it is not without its opposition.
While the resorts are in focus, online business are booming, unregulated. Each new online casino that offers services to Japanese is technically not allowed to do so.
Support and Opposition; Where do People Stand?
With the Japanese holding claim to having the world’s highest quality of life for their citizens, the resulting ageing population hold more to their customs and traditions. This is proving a substantial speed bump in the race to IR gold. But with millennials not so keen to provide their country with as high a birthrate as their parents, taxes are going to play a key role in their economic future.
And it's precisely those taxes that are providing the main incentive for lawmakers to quickly seal the deal on this initiative and get it rolling. The legalization of casinos will attract plenty of tourism and tourist dollars, with local profit also boosting the economy of the area. It seems like a no brainer to counter the high national debt the government has collected recently.
Yet opposition is still coming thick and fast against PM Suga, whom has been a staunch supporter of the project since the beginning. Many groups in the more traditional southern areas of Japan are reported to be making their feelings known by way of signed petitions reaching into the hundreds of thousands. They believe that legalized gambling has no business in their area and the pressure on the Governor of Nagasaki is mounting. In addition to this the Medical Practitioners Association who believe a direct link with gambling addiction and IR is on the cards, is asking for a veto from the Governor.
Where Does the Future of IR's in Japan Lie?
As the only country in the world’s top ten economies that are yet to support the legalization of casino gambling, Japan is certain to see their three IR's open their doors by the end of the decade. With it will be plenty of welcome tourist dollars, needed off the back of the delayed Olympic bid and the thrashing that this epidemic has unleashed on the country.
Possible plans to provide non-residents with tax free winnings will further bolster tourist numbers if law makers can pass the motion. It's going to be a win for Japan, even if the more senior amongst them cannot see it. As they are the biggest headache for the government currently, draining the health system without contributing to tax relief.
And with names like MGM, Las Vegas Sands and Wynn Resorts rumored to be right in the thick of all this, could Nagasaki become the Vegas of the East? The answer is surely no, but they could end up with one of the world’s most technologically sound resorts, solely dedicated to casino gambling to stoke their economy. And it will be initiatives like this that will see some countries bounce back stronger than ever from COVID-19, whilst others rue the opportunities they let slip through their fingers.
If anyone can turn it all around in a short time, it's got to be Japan. And we're sure they won't do it at the cost of their traditions and beliefs, neither!
