Update | Japan’s parliament approves contentious casino bill despite opposition
The bill, sponsored by a group of lawmakers mainly from the ruling Liberal Democratic Party, would allow casino gambling in ‘integrated resorts’ that include hotels and entertainment facilities
Japan’s parliament passed a bill legalizing casinos early on Thursday, paving the way for billions of dollars of potential investment after years of political wrangling.
The revised casino bill was passed in both houses, Kyodo News reported, after hours of delaying tactics by the opposition. Details of the so-called integrated resorts must be laid out in a separate implementation bill before any casinos can be built -- meaning none are likely to open their doors in time for the 2020 Tokyo Olympics.
International gaming companies have been mulling investments in Japan amid a boom in tourism, particularly from China. Wynn Resorts Ltd, MGM Resorts International and Las Vegas Sands Corp. are among the operators that have expressed interest. Opening two integrated resorts in major population centers could bring in $10 billion in revenue, with potential for $30 billion if they spread across the country, according to a report by CLSA this month.
“This is a landmark occasion and should be a shot in the arm as it relates to investor sentiment in all gaming names that could be players in Japan,” Grant Govertsen, an analyst at Union Gaming, said in a research note.
Yokohama and Osaka have been touted as potential venues for the first casino resorts, while Tokyo Governor Yuriko Koike has not come out clearly in favor of a venue in the capital.
The bill, sponsored by a group of lawmakers mainly from the ruling Liberal Democratic Party, would allow casino gambling in “integrated resorts” that include hotels and entertainment facilities.
It cleared the House of Representatives on December 6 but was subsequently altered.
Opponents of the bill, including members of Komeito, the junior partner in the ruling coalition, have argued that casinos could worsen problem gambling and compromise public safety.
[The casino bill] threatens the dignity of the legislature, so we want to find a way for it to be scrapped
Party leader Natsuo Yamaguchi was among the Komeito lawmakers who voted against the bill in the upper house after the party allowed a conscience vote.