Japan Prepares to Implement Integrated Resorts Law
The Integrated Resorts Implementation Act will come into effect from the 19th of July, paving the way for Japan’s first legal land-based casino industry. This pivotal moment will be celebrated by the politicians, business leaders, and casino investors who have lobbied the government of Japan for several months to bring about this key piece of legislation. Japan’s casino industry is about to undergo the most drastic and fundamental change in its history. The significance of these moves cannot be underestimated.
Tokyo is set to become home of one of the country’s newest Integrated Resort projects. It will feature some of the nation’s most glamorous casino facilities ever, as the legal-basis for gambling takes a major pivot and opens the way for an entirely new industry. ©cegoh/Pixabay
According to a resolution tabled by the cabinet, the legal basis for Integrated Resorts in Japan will come into effect from the week commencing July 19 2021. Not only will this legal change effect the legality of casino gambling at the new Integrated Resorts in Japan, but it will also outline key recommendations for the enforcement of the rules and regulations surrounding the new industry. So it is clear that the legal basis for casino gaming and the enforcement framework are going hand-in-hand.
Despite the early implementation of the laws surround the casino opening potential in Japan, the time horizon for these venues actually hosting guests is quite extensive. Local government representatives across the country have been having intense discussions surrounding the on-the-ground construction of these facilities. With the mission objective to be strengthening Japan’s tourism industry, the indication is that these venues will not become available until 2026 at the earliest.
The Japanese public are lucky to be part of a government process that enables them to weigh in on the key decisions being made. As these Integrated Resorts will undoubtedly impact the cultural zeitgeist of Japan, there is a need to consult the public before any ground is broken on building the Integrated Resorts. Up until now everything has only been progressed on paper, but following strong public approval, the projects will begin taking physical shape over the next 12 months.
Integrated Resorts Represent Strategic Move for Japan
With the Tokyo Summer Olympics on the horizon and the devastation of the COVID pandemic still on the minds of everyone, there is an intense need for Japan to modernize its attempts at generating foreign income on its balance of payments model. One of the main efforts being made to address this imbalance is through the introduction of Integrated Resorts. The new casino complexes will compete alongside the likes of Macau and Las Vegas, bringing a whole new industry to the country, and helping it on the road to economic recovery.
Typically Japan hasn’t been accepting casinos across its territories. Having long ago outlawed gambling in most of its forms, the only types that remained intact were that of horse racing, cycling, and through the legal loopholes exploited by the pachinko parlors. Offering a chance for fully stacked casinos to exist in one of the most alluring nations in Asia will undoubtedly represent a major shift in the socio-economic flows of the continent.
Overseas casino brands have already expressed an interest in having their names attached to these projects. It won’t be before long until an American or Asian casino opens its doors in Japan, and enjoys the economic first-mover advantage of offering a service that has long been outlawed, in one of the most prosperous countries in the continent. Given the strength of these opportunities, it is certainly not a surprise that foreign interest has been intense.
New Regulatory Framework Taking Progressive Approach
Regulations being imposed on the new industry will take a progressive approach. The main elements of the new framework will look at the basics of casino operations and oversight measures. Major areas that regulators will consider when approving a new venue will be the quality of major shareholders, the adherence to traditional casino game rules, the accounting methods to formulate top-line gross gaming revenue metrics, the internal control measures for ensuring staff and player safety, and the structure of their technical support systems.
Concerns over the scheduling of the Integrated Resort project have already been tabled, and given the delays induced by the pandemic, there is a sense that this phase of the project could become another blocker. Overall, the main aim of the new regulatory framework is to make the system stringent, hard to cheat, and resilient to the outside pressures of nefarious actors that casinos are often subjected to.
The final piece of the puzzle then will be a government commission that will ultimately manage the approval process for new casinos, and make sure that players in the market are adhering to the regulations set forth. With the approval for the legal basis of Integrated Resorts in Japan coming imminently, we can expect moves to be made on this front in the next couple of months.
