Operator News
Japan – Upper limit for Japan’s gaming floor size causes concern for investors
By Phil - 2 August 2017
A panel appointed by the Japanese government to piece together recommendations to form the country’s gaming laws has formulating rules to introduce casino gambling submitted a presented its findings to Prime Minister Shinzo Abe.
The most controversial recommendation for international operators is that of an upper limit on floor space for gaming floors. The panel report didn’t specify the size but officials are known to have looked at a 15,000 sq. m. limit. The mention of a limitation has called into question the level of investment expected. By way of a comparison, Las Vegas Sands’ Venetian Macau’s gaming floor comes in at 51,000 sq. m.
Seth Sulkin, chair of a task force at the American Chamber of Commerce Japan working on casino resorts, said: “Gaming companies are very rational. They’ll calculate how much revenue they can generate with a 15,000-sq.-meter casino floor, and they will only invest as appropriate for that, which certainly won’t be $10bn.”
The report also outlined that Japanese nationals should pay an admission fee with I.D. cards to limit the number of visits but again no figures were released. Entry would be free for foreigners. The venues would not be open for anyone under the age of 20. Japanese players would only be able to buy chips with cash but foreigners would be allowed to use credit cards. ATMs would also be banned from casinos.
It also suggested that the Ministry of Land, Infrastructure, Transport and Tourism should be in charge of where the resorts would be permitted.
Casino operators would need specific licenses issued by a new casino control board.
Grant Govertsen, an analyst at Union Gaming said last month that Japan risked ‘snatching defeat from the jaws of victory’ if it over limited the opportunities for casino operators.
