CR141-p01-Front_Coinslot NEW 10/07/2014 17:08 Page 1
JULY 2014 • EDITION 141
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ASIA: A WONDERFUL OPPORTUNITY
ATLANTIC CITY: IS THERE A BREAK OR BREAKING POINT ON THE AC HORIZON? 2 IGT’s Eric Tom discusses opportunities in Asia
MACAO GAMING SHOW The Asian expo unveils its exhibitor line-up 28
PEOPLE 42
THE BUSINESS NEWSPAPER FOR THE GLOBAL CASINO INDUSTRY
The politics of Japan are far from smooth, especially when it comes to casinos. But while the enabling bill that would allow the regulation of Integrated Resorts to go forward has been delayed until the autumn, it will return to the agenda with some hard-hitting backing - from the Prime Minister and his cabinet.
D JAPAN
LEGISLATION
Japanese Prime Minister puts his weight behind casino proposals
espite a delay in the anticipated timings for the discussion of the Integrated Resort Promotion Bill in Japan, the prospects for the controversial legislation are better than ever now that the powerful prime minister Shinzo Abe and the entire cabinet has given their full support to it. Prime Minister Abe said: “Integrated Resorts are expected to provide a great contribution to tourism, regional economies and industry, I think, and can be one of the key elements of Japan’s growth strategy.” He added: “I hope in my capacity as the leader of the Liberal Democratic Party that we can aim to pass it in the next extraordinary session of the Diet.” Since coming to power a
year-and-a-half ago, Abe has pursued policies of fiscal stimulus and easing of the monetary supply - known in Japan as Abenomics - to try and rid the national economy of deflation and bring out of well over a decade of poor performance. The economy contracted in the last quarter, which helped persuade the government to give its full backing to the opening of resorts with casino gaming at their heart, despite the significant opposing pressures that will be brought to bear. As many as ten IRs of varying sizes are expected to be approved, with two of the largest planned for bayisland locations in both Tokyo and Osaka. American companies such as Las Vegas Sands, Wynn and MGM
Resorts as well as the homegrown Universal Entertainment of Kazuo Okada and even Konami, better known as a gaming machine manufacturer, have all expressed strong interest and would together bring investment totalling many tens of billions of dollars. The rewards for those companies will come from having access to a vast untapped market that enjoys gambling. For Japan, the prospect of tens of thousands of jobs in both the construction and operation of the IRs is too good to pass up. The domestic market will provide a firm foundation for the resorts but will also help attract even more tourists: 2014 is expected to be a record year as the weak yen and eased visa condi-
tions encourage more visitors, including from ever wealthier China. According to Reuters, the projected spend by foreign tourists is expected to exceed that of Japanese tourists going abroad for the first time since 1970. If the trend continues and is bolstered by the new IRs, it will contribute to both the balance of payments and public coffers through taxation. The IR market could be worth as much as $40bn a year within five years of opening, according to estimates based on the experiences elsewhere in Asia. That would make it the second largest gaming market in the world after Macau. The Prime Minister signalled his growing support
Jap anese Pr ime Minister Shi nzo Abe ’s suppo rt make s the li keli ho od of casi no l egislati on passing i n Jap an much stronger
for the IR plan in May when he visited the two resorts in Singapore. The coalition he leads has a majority in both chambers of the parliament, though the New Komeito party is ambivalent towards the proposal. Nevertheless, there is also support across the aisles for IRs, which should now make the bill’s passage a racing certainty. The delay has made the already narrow window for getting at least some resorts up and running in time for the 2020 Olympics in Tokyo narrower still but phased openings will likely allow some latitude.
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