Japan could open three casinos by 2020 Olympics in Tokyo

Japan could open three casinos by 2020 Olympics in Tokyo

Over 20 municipalities in Japan have been reported to become host to the facilities, boosting local tourism, employment, business opportunities and tax revenues.

Japan is likely to allow development of three casinos in time for the 2020 Olympics in Tokyo, the Nikkei Daily reported this week. Sources close to the matter said the government plans to select three locations out of 20 municipalities that have expressed interest in hosting the facilities.

A cross-partisan group of Japanese lawmakers aims to legalise casinos in the next parliament session, opening what analysts believe could quickly become the world’s second most profitable gambling destination, after Macau. It comes after a government change 18 months ago, which gave now Prime Minister Shinzo Abe the chance to become Japan’s most transformative leader in almost two decades.

While specifics of the bill are still up for discussion in the Diet, Japan’s Parliament, sources close to the matter suggest the country is likely to build three casino-centric integrated resorts modelled after the two in Singapore. Casinos are expected to introduce a levy for Japanese patrons, which is likely to be less than S$100 Singapore casinos charge citizens and permanent residents.

Abe has included integrated resorts as part of an overall growth strategy and regenerate Japan’s declining importance as a regional hub and tourist market. He expressed his support for casinos after visiting Singapore’s two integrated resorts in May, which triggered legislation becoming a primary issue in the Diet

“Integrated resorts are expected to provide a great contribution to tourism, regional economies and industry, I think, and can be one of the key elements of Japan’s growth strategy,” said Abe, following his tour of Singapore casinos. “I hope in my capacity as leader of the Liberal Democratic Party that we can aim to pass [casino legislation] in the next extraordinary session of the Diet.”

Over 20 municipalities in Japan have been reported to become host to the facilities, boosting local tourism, employment, business opportunities and tax revenues. Although the government is yet to confirm the locations, the Nikkei said the first choices are Osaka, Japan’s second-largest city, Okinawa, a popular resort destination, and Yokohama, a tourist destination south of Tokyo.

Analysts Fitch Ratings estimate two integrated resorts in Osaka and Tokyo could generate $7bn in annual gross gaming revenues; CLSA suggested one facility in each of Osaka and Tokyo, as well as another in a smaller city, could annually generate $10bn; and Goldman Sachs Japan estimates that four integrated resorts built in Tokyo, Osaka and Okinawa would create a ¥1.5 trillion ($14.5bn) market.