Japan approves plan for country's first casino resort
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Japan has approved plans for the nation’s first casino, paving the way to open up what is seen as one of Asia’s largest untapped casino markets.
To be located on Yumeshima, an artificial island in Osaka, the casino will be part of a 1.08 trillion yen (about $8.1 billion) “integrated resort.” With a theater, art museum, conference hall and other amenities, the resort is anticipated to open in 2029 and expects to attract 20 million visitors annually.Osaka last April submitted plans for the development, which is partly backed by U.S. casino operator MGM Resorts International and Japan’s Orix Corporation.
Japanese Prime Minister Fumio Kishida said Friday he hopes the resort and casino “will become a tourism base that promotes Japan’s charms to the world.”
The resort’s approval comes as Japan seeks to boost tourism and marks a significant shift in a nation that prohibited casino gambling until 2018. Japan reopened its borders to international travelers in October after more than two and half years of strict pandemic policies.
Investors view Japan, which is home to 125 million people, as a golden egg. Goldman Sachs predicted in 2018 that Japan could become one of the largest casino markets in Asia, second only to Macao. A similar resort project in Nagasaki, Japan, is also awaiting approval.
However, the plans in Osaka have split the public, with some concerned about a rise in organized crime, gambling addiction and the use of public resources. Dozens of local residents demonstrated in response to the decision to approve the plans on Friday, Japanese media reported.
In opening the casino, Japan is poised to follow in the footsteps of Singapore, which legalized casinos in 2005 and whose Marina Bay Sands integrated resort earned more than $400 million in gaming revenue in the final quarter of 2022.
Should the plan go through, Japan will enter a market long dominated by Macao, a special administrative district of China that is sometimes called the “Vegas of Asia.” While gambling is outlawed in mainland China, Macao operates separately under a policy called “one country, two systems.” Covid lockdowns and corruption crackdowns in Macao, though, have led some casino operators to shift their businesses to Southeast Asia, where there are more than 340 casinos, according to the South China Morning Post.
While neighboring South Korea is home to several casinos, gambling is illegal for local citizens.
Japan has lotteries, race betting and numerous pachinko parlors (for a game that is a cross between pinball and a slot machine) but only legalized gambling in resorts in 2018. The hotly-debatedlegislation took years to pass and succeeded only after the government stressed tight regulations. The law limits Japanese residents to three casino visits per week and 10 per month. Residents are required to pay 6,000 yen (about $45) for entry, while international visitors can enter free.
According to a document from MGM, 1.4 billion yen (about $10.5 million) will go toward deterring gambling addiction. The document says the casino will “contribute to research on measures to combat gambling addiction.”
