Strict Regulations Could Hamper Japan’s Gambling Industry
Japan is thought to be the new frontier when it comes to the casino industry, but strict regulations may make that a slower process than initially thought. Some analysts are of the opinion that some casino operators and developers could cut down or even back off completely from investment plans for resorts in Japan due to the aforementioned strict regulations.
According to Reuters, a group of local politicians proposed the implementation of an entry fee for Japanese nationals to enter casinos. That was just one of a few measures that would be taken to try and limit local access to new casinos in the country.
Another measure was a possible limit on the maximum casino floor space. The full list of recommendations is going to be organized and submitted to Japanese President Shinzo Abe over the next several days.
The casino floor proposal’s approval would mean casinos may only occupy 15,000 square meters of space, which experts believe is not enough space to justify larger investment in a project such as a casino resort.
Japan legalized casino gambling last December. Japan’s government must now craft a new bill in order to regulate the nation’s gaming industry. The government has until late 2017 to implement their regulation plan. Most believe Japan will initially allow the construction of a pair of integrated casino resorts with one casino facility apiece. The two properties may be able to generate up to $10 billion in revenue, which would instantly place Japan among the world’s top casino destinations.
A few big-name casino operators, including Caesars Entertainment, Hard Rock International, and Las Vegas Sands have already begun the process of looking for local partners in a potential venture in Japan. Some other companies have also already committed millions in investments.
Could Regulations Hamper Growth in Japan?
It will be interesting to see how the new proposed limitations affect interest in getting in on the ground floor of Japan’s fledgling gaming industry. Reuters quoted an unnamed casino executive who explained that the restrictions were serious enough to make their company reduce the maximum investment.
That could potentially hinder Japan’s desires to become one of the world’s top casino destinations. Legalization of gambling occurred in an attempt to boost the country’s tourism and economy, but that will not happen if these strict regulations are put into place.
The regulations have been proposed as the country seeks to prevent local Japanese nationals from becoming addicted to gambling once casinos open. Japanese nationals will be required by law to present their My Number ID cards and pay an additional entry fee upon entering gaming facilities.
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