Japan Approves First Casino in Osaka
Author:
Jacob McKenzie
The first large casino resort in Japan was approved this week for the city of Osaka, marking the beginning of a new era for Japanese tourism and domestic leisure. The opening is the first key milestone since Japanese lawmakers changed the country’s legal stance towards casinos in 2018, paving the way for the introduction of a new leisure industry across the country. Osaka as the first approved site for an integrated resort will embark on a multi-year construction project scheduled to complete in 2029.
The new casino resort in Osaka will see a wide range of classic games available, scheduled to open in 2029, the $13.5b resort will be a global phenomenon.
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On the counter side of this development are the anti-gambling campaigners that will continue to push for the opening to be delayed. The long-controversial plans to introduce casino gambling in Japan have created an environment of intense political debate over the previous couple of years. The changing of the law has provided an exception to certain types of gambling, such as poker and baccarat, a move that has upset social campaigners.
This Friday, the confirmation finally came for Osaka. After years of polishing their application to open a casino resort in the city, the city’s officials have finally agreed to the plans. This crucial moment marks the beginning of a major project that will take an initial investment of $13.5b, with a proposed opening date in 2029.
MGM Resorts International is teaming up with a local partner for the joint-venture, Orix Corp. The pair will drive the project with over 80% stake in the venture between them. They will set up the business, and plan the stages of opening. Ultimately, the joint venture will deliver an exquisite gambling complex for the people of Osaka.
Public Debate Around Casinos Intensifies in Japan
The recent approval of Osaka’s plans to open a new casino resort has intensified the public debate surrounding the legality and ethical implications of casino gambling in Japan. While proponents of casino gambling argue that it will stimulate economic growth and boost tourism, critics contend that it may exacerbate social issues, such as gambling addiction and organized crime.
In 2016, Japan’s government passed the Integrated Resort Promotion Act, which sought to legalize casino gambling in the country. The bill paved the way for the development of integrated resorts comprising casinos, hotels, and conference centers. It wasn’t long before the government followed up with the established regulatory frameworks and licensing procedures for these resorts. That’s the framework that today enables Osaka to break ground on their first casino.
The public debate surrounding casino gambling has intensified in recent years, as the opening of the first integrated resort in Osaka draws closer. There have been calls for greater transparency in the decision-making process surrounding the approval of integrated resorts. Critics argue that public opinion has not been adequately considered and that the potential negative consequences of casino gambling have not been thoroughly examined.
Chinese Tourists Appear to be the Target Market
Some business analysts seeking to gain clarity on where the customers will come from when the casino opens its doors near the end of this decade have predicted Chinese players will make up the majority. Foreign players are clearly an enormous part of the business case, and they are the justification the Japanese government will use to defend their position and justify the introduction of casinos to Japan.
The most significant part of today’s approval for Osaka to open its casino is for sure the trend that will now likely take shape. More cities around the country will now have the means to push ahead with their own applications to open integrated resorts. One such city with an application already on the table is Sasebo in the Nagasaki region in the south of the country.
