Japan Moves Closer to Legalizing Casinos
December 06 2016 - 1:40AM
Dow Jones News
TOKYO—Japan's parliament on Tuesday took a major step toward
legalizing casino gambling, a goal shared by Prime Minister Shinzo
Abe and U.S. casino companies.
Parliament's lower house passed a bill promoting casinos on
Tuesday and sent it to the upper house for review. Mr. Abe's
Liberal Democratic Party, which controls the two chambers with a
smaller coalition partner, said it hoped to enact the bill before
the current parliament session ends next week.
The bill wouldn't legalize casinos immediately. It calls on
regulators to develop specific plans on issues such as licensing
operators and preventing gambling addicts from using the casinos.
Parliament would then need to approve final legislation for
legalization. Proponents say they hope casinos could open in the
early 2020s after the 2020 Summer Olympics in Tokyo.
Japan prohibits casinos but permits gambling in other forms.
Publicly licensed bodies run lotteries and betting facilities for
horse racing. And millions of people play pachinko, a Japanese
version of pinball, at privately run parlors. Pachinko winners can
exchange prizes for cash at shops that operate in a legal gray
area.
Mr. Abe has sought to unlock the casino business since he became
prime minister in December 2012, part of his strategy to put the
nation on a growth track. Advocates say casinos would further boost
Japan's fast-growing tourism industry, which reached 20 million
foreign visitors for the first time this year, and lure
international conferences.
Opponents say the casinos could encourage criminal activity such
as money laundering and worsen the nation's gambling-addiction
problem.
Global casino companies including MGM Resorts International,
Caesars Entertainment Corp., Las Vegas Sands Corp. and Wynn Resorts
Ltd. have long eyed Japan as a promising area. The companies worked
to gain support for the bill, which envisions the type of
large-scale casino resorts in which they specialize.
Jan Jones Blackhurst, who heads government relations for Las
Vegas-based Caesars Entertainment, said Japan has been on the
company's radar for more than a decade. She said it was the
company's priority for expansion, along with Brazil, and she has
been going to the country every six weeks or so.
"We're very encouraged with the progress. We think the
legalization of [casino resorts] would be excellent for job
creation and growth of tourism, and we would be very interested in
being part of the process if it moves forward," Ms. Jones
Blackhurst said.
Analysts say Japanese casinos would likely be jointly built and
operated by domestic developers and overseas casino companies.
Polls show a majority of Japanese oppose casinos, and the bill
drew opposition from groups including the Japan Bar Association. A
poll by the Yomiuri newspaper released Sunday found 57% of
respondents opposed legalizing casinos while 34% were in favor.
"I can't see how this could be justified as an economic growth
strategy because it just fleeces money from citizens," said
Japanese Communist Party lawmaker Akira Koike.
Groups involved in combating gambling addiction said they hoped
the casino bill would prompt the government to take more steps to
protect the public.
Alexandra Berzon contributed to this article.
Write to Takashi Mochizuki at takashi.mochizuki@wsj.com
(END) Dow Jones Newswires
December 06, 2016 01:25 ET (06:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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