Japan Witnesses First Judgment in Casino Scandal
In early 2019, Japan made waves when it decided to allow casino resorts for the very first time. However, by December of the same year, the nation was embroiled in a major scandal. Tsukasa Akimoto, a prominent politician instrumental in the liberalization process, was accused of taking bribes from a Chinese gambling company. Now, two former employees of the said company have been handed down sentences. Akimoto himself is expected to stand trial soon. Despite this, Japan remains committed to its casino plans.
Bribes, luxury getaways, and cash gifts
At the Tokyo District Court, the first decisions have been made in the Japanese casino scandal surrounding alleged bribery of politician Tsukasa Akimoto. Two former employees of Chinese casino operator 500.com have been convicted and received prison sentences with a probation period of three years each. The prison time for the first person (49 years old, male) equals two years, for the second person (also male, aged 48) one year and ten months.
During the trial, it emerged that the Chinese casino company was aware of the bribes and may have played a role in organizing them. Akimoto allegedly received a minimum of 7.6 million yen (about 62,000 euros) - in cash and services. He reportedly shared information about Japan's liberalization process in return.
The verdict concludes that the defendants tried to win Akimoto's favor with lavish gifts such as luxury trips and extravagant dinners. Moreover, he is said to have accepted monetary gifts. On the other hand, 500.com had hoped for advantages in the procurement of licenses, as Akimoto was overseeing Japan's casino project.
The Japanese government initiated this course of action in March 2019 through a legislative decree by Prime Minister Shinzo Abe. Akimoto played a significant role in the reform efforts. Akimoto was initially arrested in December 2019 for bribery and abuse of office. This marked the first time in a decade that a sitting politician in Japan had been arrested. He was released on bail, only to be re-arrested last August. There, the politician is accused of attempting to bribe witnesses.
Honesty applauded by judges
The Tokyo District Court announced that they were convinced 500.com had prior knowledge of the bribes and possibly even commissioned them. This incident has tarnished the perception of both politics and the gambling industry. The judges condemned this crime severely. However, they also praised the honesty of the accused.
Both individuals initially refused attempts by Tsukasa Akimoto to bribe them. The 48-year-old is believed to have pressured the defendants into making false statements. The fact that they confessed was seen as a sign of understanding, leading to the suspended sentences. Akimoto, who has continuously denied the charges, is awaiting trial.
The ex-politician (Liberal Democratic Party) recently claimed that all his actions fell within the law. According to his words, he only accepted trips and meals but had never been offered bribes. It's likely that Akimoto will maintain this stance. No exact trial date has been set due to the global health crisis; it's probably not happening until next year.
500.com denies allegations
500.com, the Chinese operator under scrutiny, has responded to the serious allegations made by the Japanese judiciary. The law firm King & Wood Mallesons (KWM) shared the findings of their research spanning ten months with the board of directors. Conclusions indicate no wrongdoing on the company's part.
In January 2020, 500.com established a special committee to investigate these claims. The committee concluded there was insufficient evidence to violate the Foreign Corrupt Practices Act of 1977. Compliance guidelines, procedures, and internal controls were all found to be in order. However, these statements were made just a week after the auditing firm Friedman LLP discontinued its relationship with 500.com.
Friedman expressed concerns regarding the integrity of its audit reports on the 2017 and 2018 financial statements, but stated that it was unaware of any bribery allegations. 500.com then hired the accounting firm MaloneBailey to evaluate financial reports from the 2019 fiscal year due to recent financial struggles. This news followed 500.com's announcement of a 51.1% annual decline in revenue in May.
Government remains resolved to move forward
In spite of the scandal and the ongoing health crisis, Japan's government is standing firm in its plans for casino resorts. The tender process for the three casino resorts is not set to commence before next fall at the earliest. The cities under consideration are Tokyo, Yokohama, Osaka, Nagasaki, Chiba, Wakayama, and Nagoya.
Recently, various firms have chosen to exit the market for several reasons, such as regulatory, societal, and ethical considerations. This trend is evident in the withdrawals of major companies like Las Vegas Sands, Wynn Resorts, and Caesars from the United States, along with France's Partouche. The cancellations pose a significant challenge for Prime Minister Shinzo Abe. The future remains uncertain.
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Source: www.onlinecasinosdeutschland.com
