search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
Opinion JAPAN GAMING MARKET


Not pessimism, but rather a healthy dose of grounded realism


Yusuke Abe, Partner at Clifford Chance Tokyo, explains the complicated political and economic factors that need to be negotiated


¥6,000 for Japanese nationals and the number of IR areas (i.e. three) to be permitted for the first seven years, it is still unclear as to whether Komeito will fully support the bill. As the LDP has a majority in both houses, it could, theoretically, pass the bill without Komeito's support however such a step may not be politically palatable.


Yusuke Abe, Partner at Clifford Chance Tokyo www.cliffordchance.com


“Entertainment companies and other market participants internationally are readying themselves for the imminent development of integrated resorts (IRs) in Japan, anticipating that the long-awaited implementation bill may be passed in the near future. Tere is considerable preparatory work to be done.


Notwithstanding market enthusiasm and strong backing of the government by the ruling party, the Liberal Democratic Party, the current scrutiny of the government in connection with the "Moritomo" case and the discovery of controversial Defence Ministry documents, may well mean that the prospect of the bill implementing IR legislation being passed during the Diet session ending this June is becoming increasingly unrealistic.


Separately, there are further political complexities. Te LDP's junior coalition partner, the Buddhist party Komeito, is highly sensitive to the social impact of casino gaming. Although Komeito and the LDP have now agreed the key legislative framework such as entrance fees of


P120 NEWSWIRE / INTERACTIVE /MARKET DATA


Te casino promotion act passed in December 2016 requires the government to enact implementation legislation within a year, which means implementation is now already behind schedule. As IRs are a key part of the government's economic strategy, we can expect the government not to perpetuate this delay any further and to aim to pass the bill by the next Diet session this fall.


Studies indicate that the annual turnover of Japanese IRs could be between US$10billion and $15billion, and possibly even (with a favourable market reception) significantly in excess of this. Accordingly, all potential market participants internationally have a keen eye on this opportunity. Once the implementation legislation is passed, all of the relevant parties, including developers, operators, hoteliers, financiers and local governments are expected to move ahead at speed. However, there is significant preparatory work and diligence to be conducted. Tree points in particular should be borne in mind:


l


Geographic factors – a limited number of cities will win IR area licences. Accordingly, careful consideration must be given as to which city licence (or licences) to bid for. Under the proposed regime, a local government must apply for an IR area licence first, following which the central government


will select the most compelling proposal(s). If only three IR areas are permitted in Japan, first mover advantage and supporting a strongly motivated local government will be important. As the central government's indicative terms require IRs to have an exhibition centre or meeting facilities (thereby promoting MICE business generally in Japan – increasing domestic tourism being the "fourth arrow" of Abenomics), there is some market consensus that smaller cities will face a disadvantage given their lack of transportation infrastructure (particularly speedy access to international airports) and distance from major metropolitan areas within Japan.


Conversely, for big city candidates, local politics can also complicate matters - before bidding, the local government must obtain consent from the local assembly (city or prefectural level) in order to apply to the central government for an IR area licence. We have examined above some of the concerns at a national political level, which may well then be debated and reopened locally. As such, it may be easier for local governments of smaller cities (e.g. Nagasaki and Tomakomai) to obtain consensus in the local assembly, as they have been preparing for IRs some time


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150