Japan is on its way of becoming the next hotspot for gaming in Asia, or so local lawmakers think. Their hopes are substantiated by the fears of other regional iGaming hubs that things may indeed pen out the way Japan hopes. Following the Diet’s decision to give the country a go-ahead to build an integrated casino expects, Japan is making a yet another step towards achieving its goal. A new oversight body for the iGaming sector will come to live in July 2019.
Oversight for a Nascent Industry
A new entity will make sure that the adoption of the casino industry in the country goes in accordance with the law. The body known as the Casino Administration Committee (CAC) will employ 95 staff members and work under the supervision of the Cabinet Office. The official date is put for July 2019.
Within the remit of CAC, the body will be able to elaborate policies and practices that pertain to casino regulation, licensing of new entities, probity, and due diligence checks to guarantee that any new operator making a claim can be trusted. However, CAC will not be tasked with overseeing the day-to-day activities of casinos which will be outsourced to a special executive body instead.
Even though, Japan’s casinos are unlikely to open doors for years, the efforts to formalize the adoption of the segment have been quite substantial. Already, 40 municipalities have applied for a casino license in a push to bring the casino resort closer to home. The names of potential investors have also been floated and Galaxy is on the list.
However, creating a fertile ground for gambling may also cost the country a fair bit at first. The creation of CAC is estimated at $53.7 million. Even though there’s no information whether this comes as a one-off payment or it will be the expected costs over a specific period of time, the bill is rather substantial.
Opening the Casinos – A Choice to Be Made
At the same time, the IR Promotion Secretariat, charged with briefing lawmakers on potential new operators, have been working on explaining the advantages and disadvantages inherent to selecting specific companies.
While the bustle and commotion carry on, prefectures are giving it their best shot to be the winner. Even then, though, the present number of 40 prefectures is quite unrealistic, as certainly most of those will not meet the necessary standards to qualify or will give up on the idea long before the first casino arrives.
Osaka, on the other hand, is primed to receive an integrated casino resort and for a long while there, its name was associated with the passing of the bill. Osaka also has already done business with MGM Resorts and Melco Resorts, which are eager to open properties in the country. Even then, though Japanese are wary of outside meddling into their affairs and how business is handled.
That’s why Caesars Entertainment briefly went into hot water with opposition who criticized the company for sending representatives at Japanese MPs’ fund raisers, as per the country’s law, accepting donations and gifts from foreigners as politician is tantamount to bribing.
Still, the creation of CAC will hopefully create a common framework for proper management of the business.