TOKYO (AFP) - Japan on Friday (July 20) enacted a controversial law to allow casinos that the government says will boost tourism and growth but was bitterly opposed by the opposition. In a last-ditch attempt to delay the vote on the Bill in the Upper House, opposition lawmakers called a confidence vote on Prime Minister Shinzo Abe's Cabinet, despite the premier being guaranteed an easy win by his large parliamentary majority. Japan's government has long touted the drive for mega "integrated resorts" (IRs) that will include casinos, entertainment venues, restaurants, hotel and conference halls, on the Las Vegas model. It argues the casinos will bring in tourist and business spending, like other regional gambling destinations in Singapore and Macau, and provide a shot in the arm for a stagnant economy. But legislation has been controversial, including among activists concerned about Japan's already well-documented problem with gambling addiction. The law enacted on Friday allows the construction of three IR facilities, and comes after the more powerful Lower House approved the same Bill in June. "Japanese IRs are not only about casinos," top government spokesman Yoshihide Suga told reporters Friday, ahead of the vote. Related Story Casino school in Japan starts training for croupiers in anticipation of integrated resorts Related Story Gambling addiction rate under control: Survey "It is an integrated resort facility that will help increase tourism across Japan," Suga said, adding that the law would help Japan "become a major tourism nation," and boost the economy as a whole. 'HOLY GRAIL' OF GAMING Japan was long the only developed nation banning casinos but passed legislation in 2016 paving the way to legalise the industry. Public opinion is heavily against the legislation, with 62 per cent of voters saying in a survey earlier this month that they opposed it. Just 22 per cent were in favour, with 16 per cent unsure. Bolstered by public opinion on the issue, the opposition fought hard with administrative measures to delay a vote on the legislation. They also criticised the government for prioritising the Bill over measures to address a massive floods and landslides that hit western Japan earlier this month killing more than 200 people. "There are countless reasons that the Abe administration deserves a no-confidence (resolution)," said Yukio Edano, leader of the main opposition. The casino Bill is "not something that we have to make a hasty decision on" as Japan still faces disaster relief measures in western Japan, Edano said in the Lower House after submitting the no-confidence resolution. Despite the new legislation, experts say it will likely still be years before casino operators start breaking ground on facilities. And they do not expect casinos to actually open for another 5-7 years. The legislation kicks off a process that will see local regions bid for the right to host one of the three facilities, but no timeframe has been set for that process and issues including establishing a regulatory body remain to be resolved. Japan is often viewed as the Holy Grail of gaming in Asia due to its wealthy population, proximity to gamblers from China and an appetite for other forms of legal gambling, including horse racing and pachinko, a slot machine-style game. Economists estimate the casino industry could bring in takings of 2.0-3.7 trillion yen (S$24.6 billion to S$46.4 billion) a year. National and regional governments plan a combined tax of 30 per cent on gaming revenues.<doc-sep>Japan is finally moving forward with a long-awaited casino industry. On Friday, the Japanese parliament passed a new piece of legislation that outlines how the country’s potentially lucrative casino market would be run. An earlier bill passed in late 2016 to start the process. Under the new law, lawmakers approved three Las Vegas-style casinos, but there’s no specifics yet on where they’d be built. The casino industry is eyeing a Japanese gaming market that could be worth as much as $25 billion annually. For comparison, the U.S. casino industry stands at more than $70 billion per year. Several top American casino firms, including MGM Resorts and Las Vegas Sands, are interested in Japanese casino projects. “Japan took a giant step toward strengthening its economy, attracting international travelers and implementing stringent gaming regulation that protects consumers and eliminates criminal activity," the American Gaming Association said in a statement. "In the years ahead, Japanese communities will realize the many integrated resorts-related benefits that have enhanced dozens of major destinations around the globe. The gaming industry is excited to help Japan achieve its economic goals and eager to partner with the governments and people of Japan to build a world class gaming market.” Per a report from the Wall Street Journal, Japan is hoping to grow its tourism industry to 60 million foreign visitors annually by the year 2030. It had under 30 million last year. Thanks to concerns about potential gambling addiction among the Japanese populace, the law passed Friday calls for a roughly $50 entrance fee for Japanese residents. Foreign visitors would not have to pay. Additionally, Japanese guests would be limited to 10 visits every four weeks. Casinos would be required to pay 30 percent of their gambling winnings to the government. In an effort to make sure the casinos are entertainment complexes and not simply gambling dens, the government will impose a limit on gaming floors, which could be set at no more than three percent of the square footage of the entire resort.<doc-sep>Let the competition begin. Now that Japan has enacted a law outlining a road map for casino resorts, foreign operators from Las Vegas Sands Corp. to MGM Resorts International can start to seek out partners in their bid to tap a gaming market that may be worth as much as $25 billion. It could also be a boon for Japanese industries — from companies that oversee resort projects to construction giants building infrastructure. There is still a long road ahead, but talks between Japanese companies and Western operators will become more serious now that the government has given the green light. Municipalities will eventually start requesting proposals from consortium groups that want to pitch their plans. “This business becomes a legitimate viable business after the bill passes,” said Masaru Sugiyama, an analyst at Goldman Sachs Group Inc. “Companies that weren’t willing to come public with their aspirations — we’ll see them be more active with press releases, briefings, blueprints coming out for what kind of projects they want to do and where, and who they want to partner with.” Here are the companies that could play an active role in the build out of casino resorts in Japan. Some of the names mentioned have yet to express an interest in getting involved in the gaming business. Unless otherwise noted, the companies either declined to comment or couldn’t be reached. Casino Operators: Executives such as Las Vegas Sands’ Sheldon Adelson and MGM’s James Murren have said they’re willing to spend as much as $10 billion building an integrated resort in Japan. “Japan is known worldwide for a unique culture of customer-focused hospitality known as ‘omotenashi,’ ” Wynn Resorts Ltd. CEO Matt Maddox said in a statement. “This important Japanese tradition of creating a unique guest experience makes it clear to us that Japan will develop extraordinary integrated resorts that are not found in any other country.” MGM, Sands and Melco Resorts & Entertainment want to operate a resort in a large city with easy transit options. Caesars Entertainment Corp. has said it’s flexible with location, and has unveiled mock-ups for large cities and smaller regional areas. MGM CEO Jim Murren said the company was going to “advance our relationships with key stakeholders and together create a coalition of Japanese business partners who will collectively define a vision for a uniquely Japanese, world-class integrated resort.” Hard Rock Cafe International Inc. is also in the running, and has opened an office in Hokkaido. Other casino operators seeking inroads include Galaxy Entertainment Group and Genting Singapore. Osaka, Yokohama and Tomakomai in Hokkaido are the leading cities to win government approval for the first three locations allowed to build integrated resorts. Gaming: Sega Sammy Holdings Inc., widely known for its video games, has a business selling gaming machines. It’s also one of the few Japanese companies with experience running a casino — South Korea’s Paradise City. “We’ll be speaking with localities seriously about what kind of IR (integrated resort) they want to build and propose a plan that will best highlight the charms of the regions,” Chief Operating Officer Haruki Satomi said. Konami Holdings Corp., a supplier of slot and gaming machines, has set up a panel to explore its stake in Japan casinos. It holds over 400 gaming licenses in North America, Australia, Singapore and South Africa. Tourism: Travel agency HIS Co. has been actively trying to attract a firm to build a casino as part of its Nagasaki theme park Huis Ten Bosch, which recreates a Dutch town. “We are working on it with the prefecture and the city,” a theme park spokeswoman said. Construction: Obayashi Corp. created a project team in May to participate in the building of a casino resort in the Osaka area. “We want to cooperate in making IRs a reality in Japan and offer our company’s expertise,” spokesman Junichi Ichikawa said. Other major contractors that could play a role include Taisei Corp., Shimizu Corp. and Kajima Corp. Infrastructure and transit: Orix Corp., the financial-services firm that operates hotels, parking garages as well as one of Osaka’s airport concessions, is seen as a contender for an Osaka resort. SMBC Nikko analysts cite its expertise in property management and financing as strengths. An Orix spokesman said no decisions had been made yet. Transit companies operating in locations that win licenses should benefit. The selection of Yokohama would make Keikyu Corp. a winner. “We expect it could help boost the value of our railway line as it could increase the need for residences,” a spokesman said. Airlines are likely to see a boost in travelers from home and abroad, particularly China where casinos expect to get an influx of wealthy gamblers. “We expect IRs to stimulate job creation and promote tourism in areas around Japan,” All Nippon Airways Co. spokeswoman Yuko Yoshimura said. Financing: IRs are large projects that will take money to build, and money is cheap in Japan. Banks such as Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc., and Mitsubishi UFJ Financial Group Inc. are all possibilities for running the financing for a large consortium. Technology: Panasonic Corp. already provides TV monitors and security solutions for Genting’s Resorts World Sentosa casino in Singapore. Company executive Yasuyuki Higuchi said in June he would consider casino opportunities in Japan. PHOTO GALLERY (CLICK TO ENLARGE)<doc-sep>
When she she looks back on her childhood, Noriko Tanaka isn’t surprised she grew up to be a problem gambler. Her grandfather spent every spare moment playing pachinko – a pinball-like game with payouts – while her father bet regularly on bicycle races. At home, they taught Tanaka how to stake money on card games before she had reached her teens. “It was that kind of household, although no one drank alcohol,” she said. “Everyone lived for gambling.” She married an inveterate gambler, and by the time she was in her 30s realised that the casual bets she once placed on motorboat races had become a compulsion that had left her and her husband deep in debt. As head of a group campaigning to raise awareness of gambling addiction, Tanaka now faces a battle on another front. Having lifted the ban on casinos in 2016 after 15 years of debate, Japan’s parliament recently passed a bill setting out how they should be run, in response to claims that they will create a new generation of problem gamblers. Once described as the “final frontier” for casinos, Japan has dropped its official resistance to their legalisation amid evidence that it stands to gain billions of dollars in tax revenue and could rival Las Vegas and Macau as a magnet for foreign tourists. Industry analysts believe the move will create tens of thousands of jobs and boost the economies of cities such as Osaka, the current favourite to host the country’s first casino. With its large middle-class and growing popularity as a tourist destination, Japan has attracted the attention of leading operators, including Las Vegas Sands and MGM Resorts, which have suggested they are each prepared to invest $10bn (£7.6bn) in a proposed casino project in Osaka. Economists have estimated the casino industry could bring in takings of ¥2tn to ¥3.7tn ($18bn to $34bn) a year, with national and local governments helping themselves to a 30% tax on revenues. The casinos, which will initially be built in three locations starting sometime around 2022, will be part of “integrated resorts” that include hotels, conference rooms, shops, restaurants and event spaces. The government said it will take steps to deter organised crime, such as running background checks on firms that apply for casino licences, with fines of up to 500m yen for those who submit false applications. But critics said the new law has failed to address the problem of gambling addiction. Last year a government survey found that an estimated 3.2 million Japanese have at some time in their lives been hooked on pachinko, football pools, lotteries and government-run races involving horses, bicycles, speedboats and motorbikes. Most are addicted to pachinko, in which players get around strict gaming laws by exchanging prizes and tokens for cash off the premises. While the sector has declined in recent years, its 4.3m machines at 10,000 locations across the country together generate revenue of more than ¥20tn a year. In an attempt to limit exposure to slot machines and poker tables, Japanese citizens will be charged ¥6,000 admission to casinos, with visits restricted to three times a week or 10 times a month. Admission will be free for foreign tourists. Ichiro Tanioka, the president of Osaka University of Commerce and an expert in the economics of gambling, supports lifting the casino ban but describes measures outlined to address addiction as “meaningless”. “The law calls on the industry to cooperate to tackle addiction, but nowhere does it say how much funding will be provided and how it will be spent. Unless these details are worked out then these can’t be described as measures to tackle addiction,” he said. The Japanese public remains firmly against casino legalisation. A recent poll by Kyodo news agency found that 65% opposed it, with 26% in favour. Tanaka, who hasn’t gambled for 14 years, believes the government should immediately make ¥5bn available to fund services to address what she believes will be an inevitable rise in the number of addicts. “There are very few specialists in gambling addiction in Japan, and the number of self-help meetings here is a fraction of that in the US,” she said. “The arrival of casinos will bring Japan to the brink of an addiction crisis.”