Japan legalises casinos, sets stage for large-scale investment (updated)
14/12/2016 16:56
* Bill allows high-stakes gambling in Japan for first time
* Details including regulations, tax rates due within year
* Opponents concerned at addiction, organised crime
(Adds details)
By Thomas Wilson
TOKYO, Dec 15 (Reuters) - Japan's parliament passed a law on
Thursday to legalise casinos, ending 15 years of political
argument and opening the way for projects that combine
high-stakes gambling with hotels, shopping and conference space.
As few as three casinos could generate nearly $10 billion in
net profit annually, Daiwa Research Institute estimated,
equivalent to 0.2 percent of Japan's gross domestic product.
Still, casinos will not be in operation until 2022-23 at the
earliest, gaming executives have said. Fresh legislation is
needed within a year to set out details on regulation, tax rates
and dealing with social ills such as gambling addiction and
organised crime.
International gaming companies including Wynn Resorts Ltd
WYNN.O , MGM Resorts International MGM.N and Caesars
Entertainment Corp CZR.O have been considering investing in
Japan, and may have to battle to win operating rights.
MGM could plough as much as $10 billion into a Japanese
casino, its chief executive told Reuters in October.
urn:newsml:reuters.com:*:nL4N1D12Z6
Domestic companies - from game-machine makers such as Konami
Holdings Corp 9766.T to money counting machine makers like
Japan Cash Machine Co Ltd 6418.T - also stand to benefit.
Prime Minister Shinzo Abe's ruling party and smaller ones
supported the bill to help stimulate the economy and tourism.
But some lawmakers in the ruling coalition and opposition
parties were critical of the bill, which had failed repeatedly
in previous parliaments to come up for a vote.
Their concerns centre on gambling addiction and money
laundering, as well as the potentially negative impact of
casinos on local neighbourhoods.
A recent poll by public broadcaster NHK showed 44 percent of
the Japanese public opposed casinos and just 12 percent
supported them.
Pro-casino lawmakers sought to allay concerns by promising
measures to combat addiction and money laundering. urn:newsml:reuters.com:*:nL4N1E83JE
"We need to develop an environment where treatment such as
training for specialised treatment and consultation can be
received when necessary," Chief Cabinet Secretary Yoshihide Suga
said.
Lower house lawmakers approved the bill in the early hours
of Thursday after the parliamentary session, scheduled to finish
on Wednesday, was extended. It had already cleared the upper
house.
While the location of any casino resorts are yet to be
decided, Tokyo, neighbouring Yokohama, and the western city of
Osaka are among the runners.
Japan already has gambling in the form of government-backed
betting on horse, boat and bicycle races.
Gambling at "pachinko" pinball parlours, ubiquitous
throughout Japan, is also tolerated despite its legally
ambiguous status.
(Reporting by Thomas Wilson, additional reporting by Emi Emoto;
Editing by Christopher Cushing and Robin Pomeroy)
((T.Wilson@thomsonreuters.com; 81-3-6441-1598; Reuters
Messaging: t.wilson.thomsonreuters.com@reuters.net))
Keywords: JAPAN CASINOS/