Japan is poised to launch its casino gambling industry. According to the gambling expansion plans, Japan is planning to host three casinos in the first-phase.
After Japan announced plans for casino expansion, it became one of the most coveted destinations for gambling operators across the world. Almost every top gambling operator started forging local partnerships to better their chances of winning a casino license in Japan.
But a question that has started lingering is will the stricter casino policies of the Japanese government turn off investors from pursuing a casino license in Japan.
Stricter Requirements And Government To Tax Casino Winnings
Japan recently announced to withhold taxes on winnings by nonresident foreigners at casinos. The casinos will also have to keep a track of chip purchases and win-loss results. However, this policy has already been opposed and the lawmakers of the ruling party seem to be divided on the move.
Moreover, the requirements to be met by prospective operators seeking to develop a casino is stricter when compared to the global industry standards. The operators have to have a minimum of 100,000 square meters of total guest room area in the attached hotels with the gambling facilities. These will be taxed a flat rate of 30 percent.
Also, Integrated Resorts in the country must have to incorporate international conference rooms and exhibition space that should be at least about 120,000 and 200,000 square meters.
Pulling Out Of The Casino Race
While Japanese casino gambling scene has been witnessing both operators vying for a casino license and cities competing to host a casino, it seems that the charm has begun to fade.
Recently, Hokkaido prefecture which had earlier demonstrated an interest in hosting a casino in Japan said they are no longer in the league citing environmental concerns.
Moreover, with stricter gambling regulations, it is going to be challenging for operators and the local city administration as the majority of the Japanese people are not in favor of a casino gambling industry in the country.
Japanese casino gambling industry is projected to be the third-largest in the world generating approximately about $8 billion in annual revenue.