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Japan gives thumbs down VIP junkets

japan This hit Macau hard, leading to 27 straight months of decline in gross gambling revenue until Beijing decided to ease up earlier this year. The Japanese are intent on not following this model. The impetus behind the Integrated Resorts Implementation Bill was to ensure that the resorts remained family friendly and that gambling could account for no more than 3% of the total floor space of the resort. The issue of legalized gambling itself has generated much controversy in Japan, with some 60% of citizens in the country of 127 million opposed to casino gambling. Prime Minister Abe’s move in going against the stream is risky and his government is betting that the increase in tourism the integrated resorts will generate will provide enough economic stimulus to offset the risk come the next election. One of the professionals advising the Japanese government as they move forward to build their new regulatory landscape is Osaka University Commerce Professor Toru Mihara , who recently told Inside Asian Gaming, “Casino activities are allowed only for licensed operators and cannot be entrusted to any third entity, including credit to patrons. That’s thumbs down to Macau-type junkets that take risks, grant credit to patrons, and recoup gambling debts.” Despite a clear thumbs down to VIP junkets, the race is still on to pick up one of the coveted three integrated casino resorts licenses. Five major players have already been involved in extensive lobbying efforts in an attempt to put their best foot forward and ease somewhat hostile public opinion. So far, Melco Resorts, MGM Resorts, Galaxy Entertainment, Las Vegas Sands and Wynn Resorts have all put their hat in the ring, offering to invest billions in the resorts were they to win a license.

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