MGM Disputes claims of Earning from LeoVegas's Allegedly Illegal Japanese Gaming Activities
MGM Resorts has defended itself against accusations that it may have earned profits from illegal online gambling in Japan through its acquisition of LeoVegas.
In April, MGM received the first Japanese casino license in a partnership with the city of Osaka, and plans to construct an $8.1 billion integrated resort on Yumeshima, an artificial island in Osaka Bay.
A local anti-casino organization, "Society for Considering Gambling Addiction Problems" (SCGA), wants MGM's license revoked and the development project suspended. SCGA believes that MGM is "likely" to have received funds from "criminal proceeds illegally obtained by LeoVegas" in Japan, as well as accusing LeoVegas of previously running an illegal online casino targeting Japanese players.
According to the organization, if this is the case, MGM would have broken articles 11 and 18 of Japan's Act on Punishment of Organized Crime, making it ineligible to be a major shareholder in a Japanese integrated resort.
'Unfounded and Inappropriate'
In a statement on its website, MGM Resorts Japan insisted that the accusations made by the group are "unfounded and inappropriate," and are "wholly unacceptable to MGM."
MGM purchased LeoVegas, a publicly-traded Swedish company, for $600 million in the fall of 2022.
Clearly, LeoVegas had targeted the Japanese market with a Japanese-language site offering incentives in Japanese Yen. Its sister brand, Royal Panda, was also customized for the Japanese market.
Both sites declared they would leave Japan at the end of August 2022. At the time, a LeoVegas spokesperson told iGB that their departure had nothing to do with the MGM deal. This happened despite the deal passing all regulatory checks and being only weeks away from completion.
"LeoVegas had been following a strategy of concentrating on regulated and regulating markets since before any buyout offer was made," the spokesperson stated.
However, MGM Resorts Japan's statement argues that MGM explicitly requested LeoVegas to bar Japanese customers to expedite the acquisition process.
"MGM evaluated the acquisition of LeoVegas based on the company's business and operating conditions, excluding the Japanese market," the statement read.
Continued Controversy
Establishing casinos in Japan continues to be a contentious issue. One day prior to the passage of the Integrated Resorts Implementation Act (IRIA) in 2018, which officially legalized casino gambling, a fistfight broke out on the floor of the Lower House.
The Japanese public largely shares the cynicism of opposition parties. Polls routinely indicate that they are against the establishment of integrated resorts by a ratio of 2:1, with many citizens expressing concerns about rising problem gambling.
Read also:
- Games Industry Research: Carbon Emissions of Top Video Games
- U.S. cities with the most Swifties per capita
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
Source: www.casino.org
