Japan Initiates Earnest Discussion on Casino Legalization
Giant casinos around the world are closely monitoring events in Japan as the country's legislative body, the Diet, prepares to start discussing a bill that could potentially legalize and regulate on-land casino gambling. It is estimated that a regulated Japanese casino market could eventually bring in $40 billion in annual revenue, making it the second-largest in the world after Macau. Japanese politicians are keen to revitalize their economy and profit from the upcoming Tokyo Olympics in 2020 through this move.
Seizing the Moment
Early in December, the ruling Liberal Democrat Party sent a bill to parliament, one that is supported by over 200 legislators. Liberal Democrat Takeshi Iwaya, a leading advocate for this bill, recently said that he had recently garnered backing from a partner coalition and members of the main opposition party. "We're close to initiating discussions," Iwaya commented this week. "It's crucial to act when the opportunity presents itself."
Prime Minister Shinzo Abe has been visiting casinos in Singapore, revealing his interest in the economic benefits of such enterprises. He remarked that these ventures could prove advantageous to Japan.
"The bill will definitely pass," claims Kazuaki Sasaki, an assistant professor at Nihon University College of Economics. "The Liberal Democrat Party is pushing for the bill, and I don't think those against it will restrict their MPs' votes on this."
Ready to Spend
Global casino firms, such as Las Vegas Sands Corp., Genting, MGM, and Melco Crown, are keenly interested in the situation in Japan and are competing to set up developments in the country, should it open up. It is expected that there will be fierce competition for any licenses that may be given out. Sands' Chairman Sheldon Adelson declared his willingness to invest "whatever it takes" to gain a presence in Japan if the industry is legalized. $10 billion, either in cash or other forms, was the amount he mentioned as his preparedness to spend.
Las Vegas Sands has already established offices in Tokyo in anticipation of legalization. Should the company receive a gaming license in Japan, Adelson revealed plans to build a casino resort in one of Japan's major cities like Tokyo or Osaka.
There are worries that the bill may not be passed this year, which could complicate things in terms of getting ready in time for the Tokyo Olympics in 2020. The parliamentary debate has been pushed back by several months, with other legislation taking priority. Iwaya, a proponent of the bill, admitted that the bill's supporters may wait until autumn to vote in order to avoid having the bill killed by opponents.
If the bill's backers proceed with this strategy, they may keep the debate in the lower house, where support for the bill is stronger. Iwaya explained that this would help them "maintain control" over the bill until it could be presented for a vote at a later extraordinary parliament session scheduled for 2015.
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