Japan Plans To Tax Gamblers On Winnings

Japan Plans To Tax Gamblers On Winnings

As Japan is in the process of launching three casinos in the first phase, the government is planning to tax gamblers on their winning. According to the reports the Japanese government is about to withhold taxes on winnings by nonresident foreigners at casinos.

While Japan is studying the tax system, it is already in practice in the United States and South Korea where overseas gamblers are taxed on their winnings.

Following the withholding tax system, the government is also to make it mandatory for casinos to maintain records of chip purchases and win-loss results.

“If we do not decide on a certain framework in advance, it will affect the investment decisions of operators,” a Japanese government official said.

Recently, the Japanese government nominated members to the Casino Management Committee, the regulatory body tasked with monitoring the licensing of Integrated resorts in Japan.

Defense Director of Japan’s Ministry of Defense, Michio Kitamura, has been nominated as Chairman of the Committee.

According to a survey conducted by the Japan Tourism Agency, there are eight contenders who have been wanting to host a casino.

Revealing the findings of the survey report, Kazuyoshi Akaba, the Tourism Minister of Japan, earlier confirmed that eight areas are Hokkaido, the city of Chiba, Tokyo, Yokohama, Nagoya, a combined effort by Osaka Prefecture and the city of Osaka, Wakayama Prefecture and Nagasaki Prefecture.

According to a recent report from Sanford Bernstein, the Japanese casino market will generate $8 billion in gross gaming revenues annually. As such, it would be smaller than the Nevada casino market which grossed about $11 billion in revenue in 2018.

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