NEWS EXTRA
Earthquake shakes Japan gaming industry
March 2011 saw a devastating earthquake ravage Japan, shocking the world and leaving thousands missing, homeless – or dead. In the midst of a massive reconstruction effort, is now the time for the country to introduce casinos? Innovate Gaming asks the question
T
he earthquake that struck Japan last March caused devastation to the country and left hundreds dead or missing. The magnitude of re-construction ahead may prompt the government to introduce casinos,
something LV Sands Chairman Sheldon Adelson has been pushing for years. Certain forms of gambling are permitted in the country including the lottery, horse and boat racing, motorsports and the Japanese game pachinko, a pinball-like video slot. Casinos remain illegal in the country but the Japanese government is making serious strides toward lifting the ban. No official documentation has yet been filed, but
insiders believe that a casino bill could be formally introduced early this year. A cross-party group of 150 lawmakers plan to draft a bill that would permit integrated casino resorts with electronic slot and table games, entertainment and convention facilities. Potential development sites have already been discussed with a primary focus on Tokyo, Osaka and Sendai, one of the cities most affected by the earthquake. Governor of Tokyo Shintaro Ishihara has been pushing to legalize casinos for quite a while, claiming that an industry would provide a much-needed source of government revenue, amidst a 19 trillion yen earthquake relief bill. A move is being strongly backed by influential politicians, including four former prime ministers and the mayor of Osaka. Issei Koga, an MP from the governing Democratic Party of Japan said casino gambling would be an “enormously strong engine” to boost international tourism. Arguments the Governor faces in his legislative battle
are that the Japanese would be too prone to addiction and casinos would create new breeding grounds for the Yakuza, Japan’s answer to the mafia. The illicit underworld controls a vast number of casinos operating illegally throughout the country and senior police officials are expressing concerns over increased crime. However Japan needs to find an economic lifeline and quick. Asia is booming in the gaming industry,
8 FEBRUARY 2012
with the success of Macau and more recently Singapore prompting other countries to adopt integrated Las-Vegas style casinos. In the Philippines, government-run PAGCOR operate 13 large casinos and South Korea is making a legislative push to allow the development of integrated casino resorts. Sheldon Adelson has seen LV Sands casino
operations in Asia considerably outperform the company’s more established Las Vegas casinos. Recognising cultural ties to gambling throughout Asia, the casino magnate has been trying to unblock the casino ban in Japan for the past few years. “We’ve been lobbying there for years,” Adelson said. There are approximately 12,500 privately-
operated pachinko parlors in Japan, which circumvent anti-gambling laws by issuing players with vouchers that are exchanged for cash outside the premises. Pachislot, a simple reel-based slot game, is also popular in Japan and works by awarding prizes or vouchers. Pachinko is the primary form of entertainment in the nation and attracts up to 20 percent of the 128 million-strong population. The government has estimated annual revenues of the Pachinko and Pachislot industry is worth close to 29 trillion Yen. That’s us$300 billion and almost double the total revenues expected from international casino gambling in 2015, as estimated by PricewaterhouseCoopers. A sure indicator that casino gaming will explode in the country.
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