Casino Operators Expecting Very Strict Gaming Regulations In Japan
Japan legalized casino gambling in July 2018 but has so far yet to open a single land based casino or even issue any casino gaming licenses. This is because Japan is yet to finalize its regulatory framework that will govern the casino gaming industry in the country.
While COVID-19 did play a role in slowing down the regulatory framework process, Japan has had multiple issues in putting together and finalizing its overall gaming regulations. Japan has invested a lot of time, effort and money to study multiple gaming markets such as the United States, Macau and Singapore to absorb the best practices and then bring it back so that it can be adopted into its regulatory framework.
The Japan Casino Regulatory Commission released a draft regulatory framework earlier this month and said that it would collect public feedback on the draft gaming regulations till May 9.
The draft framework is not an exhaustive framework of gaming regulations but does consist of key components which include the role of the casino regulator, policies that will control casino operators and money laundering laws.
All of these policies were put in place based on the guidance found in the Integrated Resorts (IR) Implementation Law. However, there is a lack of details concerning a number of key areas such as steps to control gambling addiction and anti-money laundering laws.
Jay Defibaugh who works as a leisure-sector analyst for CLSA Securities Japan Co Ltd has said that when Japan finalizes its gaming regulatory framework, you will find that it has the most stringent gaming regulatory framework in the world.
Casino Operators Keeping Close Watch
When Japan legalized casino gambling in 2018, all of the top gaming operators in the world were keen to obtain a casino license to operate in Japan. The late chairman of Sands Corp. went on record to call the Japanese casino market the holy grail of the world’s gaming industry.
However, due to the slow process of getting gaming regulations in place and Japan’s stance on implementing extremely strict gaming regulations, a lot of casino operators no longer see that eager to get a casino license in Japan. Wynn Resorts and Sands Corp are two casino operators who have since backed out.
Japan is now looking to finalize its gaming regulations and have them rolled out before the end of 2021.