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Japan Appoints Toshiyuki Shimada as Secretary General of Casino Regulator

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Japan’s Casino Regulatory Commission has appointed Toshiyuki Shimada as its new Secretary General, effective from July 1. He will succeed Takuya Sakaguchi, who has held the position since July 2023.

Japan Appoints Toshiyuki Shimada Casino Regulatory Commission Secretary General

Shimada previously served as the regulator’s Deputy Secretary General and also has experience in Japan’s Ministry of Finance. Under Japan’s legal framework, five key members of the commission’s senior executive team, including the Secretary General, must be appointed by Parliament. Typically, these members serve staggered five-year terms.

Since January 7, the commission has been led by Takafumi Sato, the former superintendent prosecutor of the Takamatsu High Public Prosecutors’ Office. Another recent addition to the commission is Junichi Kakimizu, who previously headed the National Tax College under the National Tax Agency. The remaining three current members are Michiko Watari, a psychiatrist; Hirofumi Kitamura, a former director of the National Police Agency’s Traffic Bureau; and Keiko Ishikawa, an economics professor at Nihon University. Both Kitamura and Ishikawa are currently serving ongoing terms.

What’s the State of Gambling in Japan?

Shimada’s appointment comes at a critical time for the gambling industry in Japan. The country has been tightening its regulations on the sector over the past few months, despite gambling in the land of the rising sun already being quite restricted. For example, last week Japan banned online casino ads that target local users.

In general, most forms of gambling are banned in Japan by the Criminal Code, Chapter 23. However, there are several exceptions, such as betting on horse racing and specific motor sports. Public sports betting, lotteries, and toto (soccer pools) are conducted under special legislation to generate revenue for national and local governments while also providing entertainment.

One notable way for gamers in Japan to legally have a gambling-like experience is through Pachinko. Pachinko is a pinball-like slot machine game widely played in Japan, operated by private companies and officially not classified as gambling due to historical, cultural, and legal exceptions. By 2011, there were around 12,480 pachinko parlors, and by 2018, annual spending on pachinko reached $200 billion, accounting for nearly half of Japan’s leisure time. Players win more balls during gameplay, which can be exchanged for prizes. While cash prizes are illegal within parlors, players typically exchange their winnings for tokens, which are then “sold” for cash at nearby shops, which legally circumvents gambling laws.

Currently, only one casino resort in Japan has received national approval: the MGM Osaka at Yumeshima in Osaka, with an estimated investment of JPY 1.27 trillion (approximately USD 7.9 billion). The project is being spearheaded by MGM Resorts International, which is the parent company of Macau-based MGM China Holdings Ltd, and Japan’s Orix Corp. Last month, MGM Resorts increased its Osaka investment by 20%, showing the importance of the project for the company. The venue is expected to open by 2030.

Categories: Industry