South Korea to cash in as Japan’s US$15 billion casino dream fades

South Korea looks like being the consolation prize as Japan's US$15 billion casino dream fades, a setback for companies such as Las Vegas Sands that envisioned a new gaming hub rivalling Las Vegas in 2020.

The bill that would have legalised casino gambling died when Japanese Prime Minister Shinzo Abe dissolved parliament on Friday to call a snap election. That means lawmakers cannot pass regulatory legislation next year, making it highly unlikely any casinos will be ready in time to profit from tourists arriving for Japan's 2020 summer Olympics.

Sources involved in trying to negotiate the bill's passage through parliament said it was unclear whether the legislation would even pass next year because the budget and defence were likely to dominate parliamentary debate.

"It's challenging but not impossible," said pro-casino lobbyist Satoshi Okabe, head of ad agency Dentsu's integrated-resorts and tourism business.

Others were less optimistic about a bill passing next year, saying it may not even make it to debate for a while.

Developing new markets is important for casino companies as China's corruption crackdown and a slowing economy curb revenues in Macau, the world's biggest gaming hub. October revenues in Macau fell 23 per cent, the largest monthly drop on record.