Japan Signals New Expansion Phase for Casino Resorts

Japan is moving ahead with the development of its land-based casino sector, as high-level government representatives confirmed that the national government is gearing up to launch a second round of applications for integrated resort (IR) development. The project could potentially result in up to two new high-profile casino projects by the end of 2027, significantly expanding the nation’s gambling market.

New IR Applications Will Likely Focus on Less Popular Prefectures

Naoya Haraikawa, commissioner of the Japan Tourism Agency, discussed IR expansion during a tourism forum this week in Hokkaido. According to local news outlet Hokkaido Shimbun, Haraikawa was optimistic that such venues could become more than just gambling destinations. He envisioned large-scale entertainment and tourism districts to bolster regional economies, attracting foreign and domestic visitors.

The revenue engine of IRs lies within the casino. However, the government wants to develop new tourist hubs equipped with other attractive tourism facilities.

Naoya Haraikawa, Japan Tourism Agency commissioner

Japan’s IR regulations permit a maximum of three licenses. The first round, which concluded in 2023,  yielded only one successful bid. The Osaka IR project, backed by MGM Resorts and Orix Corp, won the nation’s first license. The venue, valued at over JPY1.27 trillion ($8.81 billion), should open in 2030 and serve as a proving ground for Japan’s IR model.

A second IR application by the prefecture of Nagasaki did not meet several conditions by Japan’s Ministry of Land, Infrastructure, Transport and Tourism. The newest round of applications will prioritize regional diversity, potentially favoring areas outside the heavily urbanized Kansai region. Hokkaido, which dropped out of the first round due to local opposition and environmental concerns, could see another potential project.

Unregulated Online Gambling Remains a Big No-No

Japan’s ongoing push for regulated land-based casino resorts goes hand-in-hand with its continued crackdown against unlawful online gambling. Authorities have intensified efforts to cut off access to overseas gambling sites targeting Japanese users. Government officials previously remarked that over 3 million residents have logged into offshore platforms. Many of these websites operate in Japanese and offer payments in Yen.

The Ministry of Internal Affairs and Communications petitioned eight jurisdictions, including Curacao, Malta, Georgia, and the Isle of Man, asking the local regulators to intervene and shut down these sites. Authorities note that most of the identified black market entities are casino websites registered in Curacao, a popular jurisdiction for gambling operations targeting overseas customers.

While most nations prioritize cracking down on offending operators, Japan has opted to prosecute users as well. Several high-profile arrests indicated that the country will pursue illegal gambling on all available fronts. Combined, Japan’s efforts signal a commitment to foster a controlled, revenue-generating industry while drawing a firm line against black market entities.