On April 20, the Wakayama Prefectural Assembly rejected an integrated casino resort project being promoted by the prefecture’s governor and other prominent politicians. That leaves just Osaka city and prefecture, and Nagasaki as localities that have said they will submit bid plans to the central government for permission to construct IR-casino complexes.
Wakayama’s move has refocused the media’s attention on the stalled introduction of casino gambling to Japan, and most of that attention is now directed at Osaka, whose own plans are being boosted by local leadership as represented by opposition party Ishin no Kai, which effectively controls the local government. The plan is to build an IR with casino on the artificial island of Yumeshima in Osaka Bay under the management of a consortium that includes U.S. casino heavyweight MGM Resorts International and local financial firm Orix. Yumeshima will also be the site of the 2025 Osaka Kansai Expo. In fact, the two projects are inextricably linked to Ishin’s plans for growth in the region.
However, as the opening of any casinos in Japan gets pushed farther into the future their viability looks increasingly precarious. On May 8, Asahi Shimbun ran an article in its Sunday World Economy section about Singapore’s IR casino business as a means of trying to figure out whether Japan could possibly compete. Initially the pitch to the public regarding the legalization of casino gambling in Japan, which most Japanese people have opposed according to surveys, is that it was meant to bolster local economies by taking advantage of foreign visitors, meaning casinos weren’t being targeted at domestic users. However, in the years since the idea was first proposed matters have changed significantly, especially after the COVID pandemic wiped out the inbound tourist industry. Rebuilding that revenue base after the lifting of border restrictions will be a chore, but, more importantly, attracting the kind of high-rollers, mainly from China, who could sustain a fledgling gaming industry in Japan is going to be doubly difficult.
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