Project Postponed: Integrated Resorts in Japan Waiting for Better Days to Come

Though the entire project regarding integrated resorts in Japan was heading in an expectedly positive direction, a recent course of events led to a sudden delay. The government of Prime Minister, Shinzo Abe, announced the postponement…

…not long ago. This development of the situation could see the ruling party not take up the IR issue once again until early 2020 and would put numerous interested sides in a pending phase.

Bidders Put on Hold

The decision also affects the issuance of further specific bidding regulations, with only three licenses to be initially up for grabs. Just to remind you, MGM and Las Vegas Sands were among those with the highest chances of being granted the certifications to distribute services in the planned IRs. Besides these two corporations…

…a significant number of global casino resort organizations came up with attractive proposals to cement their place within the country. However, one of the reasons for the delay was the raising concern of the Japanese public towards the idea of legalization of casino gambling.

Osaka to Suffer the Most

News of the delay was particularly shocking for Osaka, due to plans of its anticipated Yumeshima destination. As it was decided prior to this postponement, a grand opening was supposed to take place during the 2025 World Expo being hosted in the region. Moreover, they hoped that through the implementation of the integrated project…

…an increased number of international tourists would be attracted to Japan. This could significantly help in achieving the government’s objective of attracting 60 million inbound visitors by 2030. As for the entrance fees, Japanese visitors would be charged 6,000 yen ($55) and would face limits on the number of visits. On the other hand, foreign visitors would have free entry.

To Be Continued, but Cautiously

The ruling Liberal Democratic Party is said to be cautious about the timing of the announcement. The public attention will now be the main focus as it could negatively impact electoral prospects, with the House of Councillors elections on the horizon.

As for the project itself, when the IR Implementation Bill becomes reality, the Casino Management Board consisting of five will be established. They should operate under the umbrella of the Cabinet Office and oversee IR operations. Areas of oversight would also include the following:

• operator finances and management
• investigation of possible criminal connections of executives and their family
• money laundering countermeasures
• appropriate policies to deal with gambling addiction.

In addition to this, the body will possess the power to suspend or terminate licenses in case violations of law occur. Japan is already working on numerous measures of player protection.

Source:

“Government delays Japanese integrated resorts”, casinobeats.com, May 23, 2019.