Japan’s CRC to Receive Less than 3% Budget Increase in 2023

Japan’s Casino Regulatory Commission (CRC) may not receive the increase for the next financial year if the budget proposal put forward by the national government is approved in parliament next month.

Planned Headcount Increase Unlikely

The Japanese government agency operating as an external bureau of the Cabinet Office under the jurisdiction of the Prime Minister will likely receive just ¥3.62 billion ($27.2 million) for the financial year 2023 or an increase of less than 3% to the budget allocated to the commission in the previous financial year, GGRAsia reported.

The agency formed under the Integrated Resort Development Act with a remit to govern the country’s commercial gaming industry asked for more money in September, ¥3.88 billion ($29.2 million), or a 10% increase, in order to carry out its duties effectively.

The commission set out plans to expand its headcount by 20 new employees to 177 but may not be able to achieve that with the money allocated to it within a record-high national budget of ¥113 trillion in which defense spending is up by 26%.

The government is expected to submit the budget plan to the parliament for approval at the end of January and the increase in the commission’s budget means it will be able to employ only 7 new staff members, bringing its total personnel and operational costs estimate for the year by ¥70 million ($525,900) to ¥2.85 billion ($21.4 million).

Breakdown of Other Costs

The commission expects its costs related to the supervision of casino operators and others to go down by ¥10 million ($75,130) to ¥370 million ($2.78 million), while costs of conducting examinations of casino operators’ and others’ suitability for a license to go up by ¥10 million ($75,138) to ¥220 million ($1.65 million)

Expenses related to the information technology system supporting casino operators’ and others’ checks for suitability are estimated to be the same as the previous financial year at ¥60 million (450,780).

The amount does not include the cost of the establishment of Japan’s Digital Agency, a government body aimed at facilitating the digitalization of the country’s economy, government and society, ¥910 million ($6.84 million), which will also be paid by the Casino Regulatory Commission’s budget.

An increase of ¥30 million (225,400) will be provided to the commission to finance its relationships with other regulatory bodies overseas, ramping up this cost to ¥220 million (1.65 million).

Recent news that a final decision on whether Osaka and Nagasaki would be allowed to host an integrated resort (IR) is unlikely in 2022, the country may not be able to have an operational IR before 2030.