It appears to be all systems go for the future transformation of Japan’s casino industry after Prime Minister Sanae Takaichi secured victory in the country’s snap election.
For the first time since Japan’s parliament took its current form in 1947, Takaichi’s Liberal Democratic Party (LDP) secured more than two-thirds of the lower house majority, paving the way for her to implement policies focused on economic rejuvenation.
Part of her policies for change includes a focus on advancing Japan’s plans to introduce land-based gaming to the country through the construction of integrated resorts.
After being elected in October as Japan’s first female Prime Minister, Takaichi urged the Tourism Minister to resume efforts to ramp up the implementation of the mandate, which allows for three developments.
So far, only one plan has received approval, and work has begun on a resort led by a joint venture between MGM Resorts International and Japan’s Orix Corporation in Osaka. However, the Japanese Tourism Agency has laid out plans for a new application window between 6 May and 5 November 2027.
Takaichi has long held casinos as a sector ripe for economic potential in Japan, as the country battles rising cost of living and an ageing population. She was one of the earliest proponents of legalising the sector, and her 2013 bill calling for change helped lay the groundwork for the broader integrated resort legislation that is in place today.
Nagasaki and Wakayama previously took part in the first round of applications, however, they were both rejected. Meanwhile, Yokohama withdrew its application, citing social concerns.
Looking ahead, it is likely that both these locations will once again submit applications, while Hokkaido has also displayed interest in exploring the economic potential of land-based gaming.
Each region interested in being home to an integrated resort must prepare an area development plan in collaboration with a private sector operator. International firms such as Caesars Entertainment, Wynn Resorts and Hard Rock International were linked to applications amid an increased focus on Asian investment.
Takaichi’s economic blueprint for stimulating growth largely focuses on cutting taxes while boosting the Japanese economy through spending. The country’s stock markets responded to her victory positively, surging to record highs.
Although MGM’s Osaka project isn’t expected to open until 2030, international investment in the construction of such venues will provide a significant boost to the Japanese economy.
Meanwhile, Japan is home to a thriving gambling black market, estimated to be worth ¥1.24tn (£6.2bn) for online gambling alone. As such, there appears to be a strong demand for gaming in the country, which these integrated resorts will hope to satiate, in turn providing the state with an economic uplift through tax revenue.
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