Japan Plans to Revise Casino Licensing Zones; Hokkaido and Tokyo Express Interest, According to a Report
Yo! Let's dive into the latest on Japan's gambling market. The Land of the Rising Sun's getting ready to double down on integrated resorts (IRs)—that's casinos, hotels, shopping centers, and all the good stuff—by issuing two more licenses by the end of 2027. This move brings us one step closer to the three-license limit set by the 2018 law, with only one license currently awarded to MGM Osaka.
After a survey in late 2023 showed renewed interest from several prefectures, including Hokkaido and potentially Tokyo, the Japan Casino Regulatory Commission is gearing up to relaunch the application process later this year.
John Calderon, an iGaming consultant, thinks this is tremendous news for the industry: "Man, Japan opening up two more spots for integrated resorts? This is massive! Global operators are gonna freakin' scramble to get a piece of that action. Expect some innovative gaming experiences and a huge investment boost for the Japanese economy."
Intriguingly, Hokkaido, which earlier opted out of the IR program, is reconsidering its decision. Once upon a time, Hard Rock International, Mohegan Gaming, and Rush Street Japan had expressed interest in the region, but things didn't pan out. Could history repeat itself?
Meanwhile, Tokyo, Japan's economic powerhouse, was initially considered the most promising location for an IR, but political uncertainty led operators to look elsewhere. Now, it seems the city might reenter the race.
The MGM Osaka project is the country's first venture into the casino resort sector, estimated to be worth a whopping 1.27 trillion yen (around $8.8 billion), and slated to open in 2030 on Yumeshima Island. As the first IR, it's expected to set a precedent for future projects and build investor confidence.
But remember, Calderon points out the importance of addressing illegal gambling to ensure the benefits of legal IRs are maximized: "For Japan to fully capitalize on these new licenses, they've gotta crack down on illicit activities. A solid regulatory framework combined with firm actions against illegal gaming can help prevent the proliferation of the black market and make sure the legal IRs thrive."
Keep an eye on this developments, fam. The Japanese gambling scene is shaping up to be a wild ride!
- "With Japan preparing to issue two more integrated resort licenses by the end of 2027, global operators are anticipated to fiercely compete for a chance to establish casino-and-gambling ventures in these locations, according to John Calderon, an iGaming consultant."
- "As several prefectures, such as Hokkaido and potentially Tokyo, show renewed interest in integrated resorts, it's imperative for Japan to strengthen its regulatory framework to prevent the proliferation of the black market and ensure the success of these legal casino-and-gambling establishments, as Calderon suggests."
