Japan casinos likely to be taxed lower than Macau operators

17.09.2013

Future casino resort operators in Japan may be required to pay a national government tax on gross gaming revenue of up to 10 %. This is according to a report from Union Gaming Research Macau which adds that a further GGR tax at local government level might be levied at a rate between 0-10 % .

However, even if suggested maximum levels of national and local gaming tax were levied on the gross, the gaming tax burden on operators would – at 20 % – still be only about half that imposed on Macau operators.

“We could see an economically disadvantaged area attempt to draw higher levels of investment (and resulting employment) by offering a very low prefectural level GGR tax rate that, when combined with the national GGR tax, would suggest a total GGR tax barely over 10 %,” says the research firm.

Union Gaming also suggests that while the Tokyo and Osaka metropolitan areas are the most likely sites for casino resorts, it’s possible that prefectures within those areas will compete among themselves to host one.

“Chiba prefecture (home to Tokyo Disney and Narita Airport) might take on Tokyo prefecture for the rights to host the one IR license destined for the Tokyo metropolitan area. There is also talk of Chiba and Tokyo working together in some fashion due to the limited availability of land in Tokyo,” adds Union Gaming.

The research house adds: “It is important to note that the national government is likely to give the prefectures certain leeway in determining the regulatory structure of the IRs.”

Macau casino investors Las Vegas Sands, MGM Resorts International and Wynn Resorts are scheduled to hold presentations at a conference on Japan that Las Vegas-based Union Gaming Group is hosting in Tokyo from September 17 to 19.