Japan Casino: Gambling on casinos to help lift economy

World
Europe

02:41

Japan is gambling on casinos to help lift its struggling economy. Lawmakers want to legalize casino gaming in order to attract tourism money and levy a gaming tax. Some predict Japan's gaming market could become bigger than Las Vegas. Our Tokyo correspondent Mayu Yoshida has more.

Standing 600 miles north of Tokyo in the middle of nowhere, this site could soon be the home of a state-of-the-art casino resort.

International casino operators are bidding to open gambling resorts in Japan.

The potential for increased tourism is attractive to small, local towns like Tomakomai.

ED BOWERS, CEO MGM RESORTS JAPAN"It's one of the few remaining big Asian markets. I think Japan has a strong economy and has a large population base. Japan has a huge range of cultural assets. So when you take all of those things together, Japan becomes an extremely interesting place for us."

Until now, casinos have been illegal in the world's third-largest economy amid concerns over an increase in gambling addictions and yakuza organized crime.

But Japan has been looking for new sources of growth. Analysts think Japan could become the world's second-biggest casino market after Macau. Industry projections suggest revenues could hit US$16 billion a year.

YOSHIYUKI OSHITA, PRINCIPLE CONSULTANT MITSUBISHI UFJ RESEARCH AND CONSULTING "The number of integrated resorts will likely increase from three after seven years. New IRs will create a new tourism pattern and help regional economies grow."

MAYU YOSHIDA TOKYO "Japan's ruling coalition submitted legislation last month that could create up to three casino resorts. According to local media reports, eight prefectures are considered finalists. Big cities such as Tokyo and Osaka are likely to win a spot, so the remaining six are all vying for the last spot.”

Lawmakers aim to pass a bill by this summer. And companies want to make that happen by changing the negative image associated with casinos.

GEOFFREY DAVIS CFO, MELCO GROUP CEO, MELCO RESORTS & ENTERTAINMENT JAPAN "It's all about education, providing data, providing information of how IRs can be beneficial to communities through employment, through tax generation, together through inbound tourism visitation and really working with government to help educate people about the benefits of IR."

Analysts say the chances of the casino authorization bill passing in the coming months is low because lawmakers are preoccupied with a batch of domestic political scandals.

Nevertheless, residents hope new integrated resorts will help the local economy hit the jackpot.