After an initial proposal in 2020 to legalize casino gambling in the country, Japan is set to open its first integrated resort in 2029.
1. First casino
The Japanese government approved its first casino on April 14, in a bid to develop a new source of tourism and compete with other markets in Asia. The future premises will include a casino, a conference center, an exhibition hall, a hotel and a theater, located in the artificial island of Osaka Bay. Since many Asian casinos are struggling to recover from a drop in Chinese visitors after Covid-19, the Japanese are focusing on attracting domestic tourists as of 2029.
2. Green light
Gambling in Japan has a complex and restrictive legal framework. Only in 2016 did the Japanese government pass a bill legalizing casino gambling in the country. The law allowed for the establishment of up to three integrated casino resorts, which were expected to attract foreign tourists and boost the country’s tourism industry — before the pandemic hit. After the proposal in April 2020 for the resort facility from the Osaka city and prefectural governments, Nikkei Asia media outlet reported that, recently, an expert panel under the ministry is believed to have determined that the proposal from both governments meets all of the necessary requirements.
Japan has been opposed to having casino due to opposition from a significant portion of the Japanese public, which contends that legal gambling would make way for corruption and create financial disaster risks for families. On the other hand, pro-casino politicians have countered that if properly regulated gambling can bring economic vitality in the form of tourism.
3. Osaka
The Osaka-located facility sits on a site that measures approximately 492,000 square meters and is expected to attract 20 million guests and generate 520 billion yen (€3.5 billion) in revenue a year. According to a report from the Osaka prefecture, the resort will employ a loyalty program to attract customers from around Osaka. The idea is to “work on consumption-promotion contributions in the regions of the integrated resort hinterland.” Osaka holds attractions like Universal Studios Japan and is less than an hour away from Kyoto, a popular site for tourists.
4. Emerging market
Japanese Prime Minister Fumio Kishida said that the “integrated resort is important for attracting many tourists, both domestic and international, and to pursue the goal of being a tourism-oriented nation.” The Asian country is hoping to stand strong as an emerging market against major gambling nations like Singapore and Macao, which are still struggling with the fallout from China’s zero-Covid policy. Asia and its casinos “are heavily dependent on Chinese tourists and are showing a relatively slow recovery compared to cities like Las Vegas,” said Shota Otani, an Associate Professor at Yasuda Women’s University.
