US Casino Companies Eye Huge New Market in Japan

Looking for ways to boost the economy via the tourist trade, the administration of Japanese Prime Minister Shinzo Abe is considering allowing casino gambling as a means to accomplish that goal, which has American gaming companies at the ready to enter what is expected to be a lucrative market.

MGM Resorts, Las Vegas Sands, Hard Rock International, and Wynn Resorts are among the US-based players who are eager to set up shop in Japan, and all have voiced their willingness to spend the billions of dollars necessary to open lavish casinos on par with the offerings in Macau and Singapore. The market size would exceed that of Las Vegas, providing a ripe opportunity for established gaming companies.

“We’ve been trying to come [to Japan] for many years,” Robert G. Goldstein, president and COO of Las Vegas Sands, told the Washington Post. “It’s got huge appeal internationally."

An “Integrated Resort Promotion Law” passed by parliament in December has opened the door for casino gambling to take hold, but additional legislation is required. That bill requires casinos to be part of a resort that includes a hotel, conference area, and other entertainment and sports facilities.

Opponents of Gambling State Their Views

There remains some resistance to casinos from Japanese citizens who point to societal ills typically attributed to gambling such as addiction and money laundering. But Abe's government points to a stagnant economy and the need for increasing tourism as the main reason for resorts that include casinos.

The Summer Olympics will be hosted by Tokyo in 2020, but it's unlikely that the new casinos will be up and running by then. Many details have yet to be ironed out, including regulation of the new industry.

There are fears that Japan may be inclined to over-regulate, making decisions such as limiting the amount of gaming space or disallowing Japanese citizens to use credit cards. Another idea floated was banning ATMs inside the casino.

Early projections are that the resorts may take in $10 billion per year. Estimates on the date the casinos might open were set at 2023, with Osaka and Yokohama the likely cities to be first in line after legislation advances.