Japanese Casino Concerns Following Draconian Regulatory Proposals

Japanese Casino Concerns Following Draconian Regulatory ProposalsJapan’s parliament finally approved casino legalization last year, paving the way for at least three high-end integrated casino resorts to be built by 2023, complete with hotels, shopping and conference facilities.
According to estimates these three venues alone could generate around $10 billion in annual net profits, or 0.2% of Japan’s current gross domestic product, with international companies such as Wynn Resorts, MGM Resorts International and Caesars Entertainment lining up for an opportunity to win operating rights.
That said, the casino industry’s appetite for the lucrative Japanese market has been diminished somewhat of late following two pieces of news that are sure to hit any investor badly. One of those is an announcement that the government is considering imposing a steep 30% annual tax rate on any casino revenue of up to $2.8 billion, rising to 40% on less than $3.7 billion, and a whopping 50% rate above that figure.
According to the government, the money collected from imposing such high rates of tax will help counteract any negative effects that may stem from Japan’s new gambling market. This includes allocating a greater level of funding towards social security provisions, as well as gambling addiction programs. However, some experts are predicting it will simply create a less attractive investment opportunity for casino companies who will subsequently be less willing to spend more money developing integrated resorts.
Casino companies also heard another piece of troubling news this month after the government proposed a plan to limit casino visits to just ten times per month, and no more than three visits over seven consecutive days. Authorities will then track compliance with the scheme through the monitoring of special issued identity cards with an embedded IC chips.
Added to previous proposals to limit the gambling space at an integrated resort to just 3% of the land space, and a possible admission fee for all Japanese citizens, its fair to say that the Japanese government’s plan to build casinos in order to increase capital expenditure and expand its tourism trade may end up backfiring. As Seth R. Sulkin from the American Chamber of Commerce in Japan’s (ACCJ) then explains:
“Gaming companies are very rational: they’ll calculate how much revenue they can generate with a 15,000-square-meter casino floor, and they will only invest as appropriate for that, which certainly won’t be $10 billion.”

Poker News
Mississippi Casinos Post Record Revenue in April as Sports Betting Beckons
04 Jun 2018
Mississippi’s casinos generated gross gaming revenue of $184 million in April, or 5% more compared to the same month in 2017. Furthermore, that total represents an all-time high for the state, and is 1.3% more than the previous record set in 2007 when thousands of volunteers entered Mississippi to assist in cleanup efforts post-Hurricane Katrina.
Switzerland Prepares For June 10th Legalized iGambling Referendum
04 Jun 2018
On June 10th, Switzerland will hold a national referendum to decide whether the ‘Money Gaming Act’ passed by the Swiss Parliament in September 2017 can be implemented next year in its present form. The piece of legislation paves the way for land-based casinos and local partners to offer legalized online gambling in Switzerland, although a
MGM Resorts International Buys NY's Empire City Casino for $850 Million
02 Jun 2018
Real estate and entertainment conglomerate MGM Resorts International has revealed that it’s embarking on a purchase of Empire City Casino, a slots and pari-mutuel wagering venue located in Yonkers, N.Y., just a few miles north of Manhattan. The deal was announced May 29 in a press release, and is expected to be completed near the
Delaware to Launch Full-Scale Sports Betting on June 5th
02 Jun 2018
Last month’s decision by the US Supreme Court to overturn the sports betting ban in the country has opened the floodgates for individual states to legalize and regulate sports wagering within their borders. Before its decision was even made, though, a number of states had already put in place the necessary legislation in order to