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Japan – The Japanese government is asking all the right questions

By - 27 November 2017

Japan’s tourism economy is about to undergo a massive shift, potentially introducing $10bn in integrated resorts, and according to researchers at UNLV’s International Gaming Institute (IGI), the Japanese government is asking all the right questions.

Japanese government officials and business leaders commissioned research from IGI’s Bo Bernhard, Brett Abarbanel, and Jennifer Roberts as well as Kahlil Philander of Washington State University to guide their nation in launching Japan’s first integrated resorts. Now available to the public, the two extensive reports the team produced provide some of the most comprehensive information that any jurisdiction has been able to utilise prior to integrated resort implementation.

The first report, entitled ‘Socio-Economic Impacts of Japanese Integrated Resorts,’ is a socioeconomic analysis of the impacts of an integrated resort casino, with a particular emphasis on Japan’s stated goals for the endeavor, including striking a balance between growing the Japanese tourism market while minimizing social costs such as addiction and crime.

The report states: “The addition of a major tourism-oriented IR development would complement this existing economy and infrastructure with some significant socio-economic advantages.

“In fact, of all of the ways in which the gambling act can be commercialised, this type of IR achieves the tourism metrics sought by Japan (outlined in the above section) best. Crucially, policymakers have a significant opportunity at this stage to positively impact how the IRs contribute to these desired goals.”

The second report is called Practical Perspectives on Gambling Regulatory Processes for Study by Japan: Eliminating Organised Crime in Nevada Casinos. It examines how gaming regulation can help Japan eliminate organised crime in casino management—a crucial first step in a new casino jurisdiction—suggesting rigorous standards in pre-licensing background investigations, post-licensing enforcement structures, internal controls and compliance practices that reflect the highest global standards, and more.

The report says: “Embracing this regulatory approach to prevention and/or elimination of organised crime will be especially crucial for a number of reasons.

First, the global gaming industry (as well as the general public) is well aware that the Yakuza have been active in gambling activities in Japan, which mandates an aggressive approach. Second, for Japan to attract the desired and desirable kind of globally-competitive capital investment in its integrated resorts, which will in turn allow for the desired and desirable kinds of globally-competitive integrated resort destinations to be constructed, there can be no association with organised crime at all – the banks, the investment community, and the most respected casino operators simply will not (indeed, cannot) participate.”

“Japan is in a fortunate position,” said Bernhard, IGI’s executive director. “The government is asking all of the right questions, and the science behind the socioeconomic impacts of integrated resorts has improved significantly in the past 15 years, providing practical and powerful guidelines for many decisions.”

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