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Japanese Government Expects to Launch the First Casinos ‘in the Late 2020s’

Article by : Helen Dec 29, 2020

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Updated: Apr 6, 2023

There were times when the Japanese government thought its first integrated resorts could be up and running just in time to “revitalize tourism and spark economic growth” right after the Tokyo Olympics 2020.

Now, with the Olympics postponed at least for a year (and probably more), and the coronavirus meddling with the integrated resorts’ launch timeline, it was time the state officials acknowledged: the first integrated resort is highly unlikely to open its doors before the late 2020s. According to the initial plans drawn up before the coronavirus craziness, the Japanese government was going to open the call for proposals for local authorities eager to host an integrated resort in January 2021. The competition was supposed to last until July 2021.

In April this year, there were already reports of rumors that the competition might be put off as the authorities – as well as the casino operators – were more focused on adapting to the brave new pandemic world. Now, the call for proposals’ start is officially postponed until October 2021, with the same amount of time – seven months – given to the municipalities for applying their projects. They will have until April 28, 2022, to submit their proposals.

With this delay, the Japanese government no longer thinks it is realistic to expect integrated resorts to start operating in the mid-2020s, as it was planned before. Now, the state officials hope the first of its kind will open its doors in the late-2020s.

In the recently published draft of the proposal for tax reform, it is also evident the ruling Liberal Democratic Party and Komeito, another political party currently in coalition with it, reached an agreement that the foreigners’ winnings received in the integrated resorts won’t be taxed. Japanese nationals, however, will still be required to report their additional income and pay what they owe to the state.

Liberal Democratic Party also announced it’d prepared a new, revised draft of the so-called Basic Policy for integrated resorts. It’s supposed to be fleshed out into the final version of the document by the end of this month.

Integrated resorts are a sort of compromise reached in the light of pushbacks against legalizing the casino industry when the bill was still in talks. They are defined as properties combining casinos with conference rooms, hotels, as well as exhibition or recreation facilities by the Integrated Resort Promotion Act passed in 2018. So far, we can expect Yokohama (Suga’s constituency), the city of Osaka, Osaka Prefecture, Wakayama Prefecture, and Nagasaki Prefecture to submit their projects as their officials have expressed explicit interest in taking part in the call for proposals.

Despite the persisting interest of the local governments, the range of casino operators willing to participate in the competition and invest in a costly integrated resort project seems to be limited at best. Las Vegas Sands, Caesars Entertainment, and Wynn Resorts have considered hopping onto this train and decided against it, perhaps due to financial hardships induced by the coronavirus-related shutdowns, travel restrictions, or other measures.

Yet, the competition does seem to be cutthroat, and some casino operators are ready to play dirty. In a recent scandal involving House of Representatives member Tsukasa Akimoto, Chinese-based 500.com wanted to operate in Japan so badly that it allegedly bribed the state official with 7.6 million yen. Akimoto denies the bribery charges, yet he was still indicted and awaits – like the rest of Japan – the final court ruling.

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