Operator News

Japan – Global Market Advisors lays out timeline for Japan’s gaming laws

By Phil - 25 October 2017

The introduction of casino gaming remains on track in Japan following Prime Minister Shinzo Abe’s landslide election victory.

Global Market Advisors believes that the pivotal Responsible Gaming Bill could yet be approved before the end of the year following with the Diet session starting in November being tipped as a potential opportunity for discussion. It also believes that the size of the future Japanese gaming floor should be market-led.

GMA said: “Some experts believe that there may be time this fall in an extended extra ordinary session to debate the Responsible Gaming Bill and pass it this year. While the specific time length of the session has not been determined at the time of this publication, if it is extended through December as has been discussed by some experts, it may allow for debate to begin on some of the key aforementioned issues, including integrated resorts. For most stakeholders following integrated resort development in Japan, there are two key pieces of legislation that are expected to occur before an RFP process is started. The first piece of legislation expected is the Responsible Gaming Bill. While there may be several current drafts of this bill, this is by far the most important bill to pass as it leads to the IR Implementation Bill.

“If the bill were to pass this year, it would be in a similar fashion to the initial IR Bill that was passed last December,” it added. “If they do not have a long enough session to address this legislation, it is thought that the bill will pass in spring 2018 in the regular ordinary session. Once the RG Bill is passed, the debate on the IR Implementation Bill will commence in late spring and into summer.”

“Instead, Japan should allow the operator to work in partnership with the regulatory board to allow for a gaming floor that meets demand, thereby allowing enough profit to warrant the large levels of investment necessary to appropriately construct the other non-gaming amenities that will help spur incremental tourism and economic benefits,” GMA stated.

“If an entry levy is charged to locals, it should be an amount that is equivalent to the cost of entertainment. Studies have shown that entry levies are not effective in preventing problem gaming. As such, an entry levy should be viewed as a tax by the government, rather than a deterrent to problem gamblers.

“Any decision on entry levies should be made by the appointed regulatory authority and based on best practices from evidence-based research. These same best practices should apply to visitation restrictions that limit the number of visits a patron may make within a given period of time.

“GMA continues to believe that there is significant opportunity for integrated resorts within major cities, as well as various regions/prefectures throughout the country. The opportunity for Japan to set the standard for the next iteration of integrated resort development is now. The market needs to be framed appropriately to create a partnership between operators and the Japanese Government. The industry still needs to educate Japanese stakeholders and the general population on all aspects of an integrated resort.

“GMA encourages the Diet to leave the specifics of many of the aforementioned items to the regulatory authority. Many of these decisions should not be set strictly in law in the IR Implementation Bill. The law should offer the guiding principles and framework from which the regulatory board can implement and oversee the integrated resorts. This will allow for evidence- based research to serve as a guiding principle and allow for the regulatory authority to evolve.”

Australian operator Crown Resorts has ruled itself out of the race for a licence in Japan. James Packer said to the Australian media: ““People talk to me about Japan. I don’t believe it is realistic for us to win a licence in Japan. I am not saying ‘no’ forever, but what I am saying ‘no’ to is writing a $500m or $1bn cheque to go into Japan next week.”