Japan facing pushback over casino regulation
Idea of floor space cap irks potential operators
TOKYO— Foreign casino operators are pushing back against moves to regulate the proposed introduction of big-ticket gambling in Japan, an early sign of friction for projects expected to generate billions of dollars for the country and the global gambling industry.
Japan voted late last year to legalize casinos, but specifics are still being hammered out to include in legislation on regulating proposed full-scale resorts — facilities hosting casinos, hotels and conference space.
A key advisory panel on Monday held its final meeting on the rules, proposing a limit on casino floor space and curbs on entry by Japanese nationals. The panel is expected to submit its proposals to Prime Minister Shinzo Abe within days.
The prospect of casino gambling is unpopular in Japan, given worries about gambling addiction and a potential increase in underground activities. As a result, foreign casino operators have been cautious about speaking out against specific rules.
And yet, casino executives and industry players said they have begun lobbying politicians and bureaucrats against specific limits on casino floor space.
Las Vegas Sands Corp. and MGM Resorts International are among the foreign operators vying to win licences to run a Japanese casino resort. The U.S. companies have previously said they would invest up to $10 billion respectively into a project.
But investments of that size could be cut if the floor space limit is pushed through, said Seth Sulkin, chair of a task force at the American Chamber of Commerce in Japan working on casino resorts.
The Review-journal is owned by the family of Las Vegas Sands Corp. Chairman and CEO Sheldon Adelson.