Konami considers Investing in Japanese Casinos

Nostalgic lovers of the video game Contra might be interested to know that Konami is considering a large investment in the potential Japanese casino market. The gaming company wants to get in on the ground floor of a budding gambling market that could be worth $40 billion.

This would be a natural investment for Konami because, aside from making video games, they also produce slots and pachinko machines – a pinball-like game that represents the main form of gambling in Japan. But before Konami’s investment becomes a reality, Japanese lawmakers must approve legislation that would allow for casino resorts in the Land of the Rising Sun.

Gambling enthusiasts were given hope last year when the Liberal Democratic Party began championing the cause for resort-style gaming. However, their efforts have stalled recently and there’s a rush because the current parliamentary session ends next month.

If the legislation does , Konami is hoping to become a minority partner in a future casino. This would add a new dimension to their empire, which includes the aforementioned manufacturing of slots, pachinko and video games. As for the latter, Konami is well known for producing both current and old hits like Contra, Castlevania, Silent Hill, Metal Gear Solid, Gradius and Life Force.

Konami isn’t the only major company that’s interested in staking a claim in Japan’s future casino market. Las Vegas Sands Corp, Melco Crown Entertainment and MGM Resorts International have been petitioning the government to legalize casino resorts and give them licenses.

These gaming industry giants all see the value in investing in a wealthy country with 127.6 million residents. Moreover, Japan remains one of the richest untapped casino markets in the world.

Of course, there’s a lot that must happen before any of this becomes a reality. Japan is still a fairly traditional country, and both politicians and citizens fear that casino gambling could corrupt their society. So the Liberal Democratic Party has faced some stiff opposition in their efforts to bring gaming establishments to the large island.

The Liberals are armed with some good arguments, though. For starters, federally legal gaming resorts could bring in up to $10 billion in tax revenue. Another point that the Liberal Party has pushed includes the exploding casino markets of Macau and Singapore – both of which many Japanese people visit.

Konami and other countries will be watching with intent interest over the next several weeks to see how this political battle plays out.