The Land of the Rising Sun Enters the Game – iGB
A highly anticipated event this year is the selection process for operators and locations for Japan’s three integrated resorts, which will mark the debut of the country’s first commercial casinos. Ayako Nakayama, head of the Japan Integrated Resort Association (JIRA), provides insights into the current situation.
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The Land of the Rising Sun Enters the Game
A highly anticipated event this year is the selection process for operators and locations for Japan’s three integrated resorts, which will mark the debut of the country’s first commercial casinos. Ayako Nakayama, head of the Japan Integrated Resort Association (JIRA), provides insights into the current situation.
Could you first provide an update on the progress of the regulations? Is everything on schedule?
The integrated resort (IR) legislation is progressing almost as planned. The fundamental regulations were introduced in 2019, alongside the Japan Casino Regulatory Commission Preparatory Office, and officially launched earlier this year. [Editor’s Note: Since this interview, the official launch seems to have been postponed, potentially due to an alleged bribery scandal.]
Osaka is a leading contender for a location, and it initiated its Request for Proposal (RFP) process in December 2019, with other locations likely to commence their own RFPs in the early to mid-2020 timeframe.
The formation of the Casino Management Committee, initially slated for completion by the end of January 2020, seems to be lagging behind schedule by roughly six months. This entity is tasked with overseeing non-gaming facets, such as pinpointing the site for the resorts.
How forthcoming has the administration been regarding this matter? Can you elucidate the reasons behind the extended timeframe?
The postponement stemmed from the national Senate elections held in July 2019. During the electoral period, the procedures associated with integrated resorts were put on hold. JIRA comprehends that the industry views this as an unavoidable, minor delay attributable to national political occurrences.
As the leader of the Japan Integrated Resort Association, what are your perspectives on the government’s management of the entire regulatory procedure?
Although JIRA lacks the authority to evaluate the efficacy of the regulatory procedure, it appears to be progressing as anticipated. That being said, the dynamics within the integrated resort sector have been undergoing rapid transformation.
There exist two distinct government entities that will regulate and administer integrated resorts in Japan. The first is the Japan Casino Regulatory Commission, which will oversee the casinos and integrated resort operators. The second is the International Tourism Bureau, which functions under the auspices of the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
These fresh dynamics will influence the future of Japanese IRs, and JIRA will keep working to evaluate and understand its fundamental structure to collaborate and accomplish our objective of building a robust industry.
These new changes will affect the future of Japanese Integrated Resorts, and JIRA will continue to work to assess and understand its fundamental structure to collaborate and achieve our goal of creating a strong industry.
Do you believe the appropriate responsible gambling protections are being developed in conjunction with regulations? Do you believe the resident entry fees and mandatory RG programs are sufficient?
Do you think the responsible gambling measures being developed in line with regulations are adequate? Do you think the resident entry fees and mandatory responsibility programs are sufficient?
The responsible gambling controls currently declared are only for basic needs, which were developed in the early stages of the regulatory process. JIRA and industry-related organizations are waiting for more details about specific regulations.
The responsible gambling controls currently announced are only for basic requirements, which were developed in the early stages of the regulatory process. JIRA and industry-related organizations are awaiting more details about specific regulations.
In addition to casinos, Japan has other forms of gambling, such as government-run gambling, including horse racing, motorboat racing, and pachinko, which are already subject to responsible gambling protections. These will remain important factors to consider in the development of the nation’s responsible gambling strategy.
In addition to casinos, Japan has other forms of gambling, such as government-controlled gambling, including horse racing, motorboat racing, and pachinko, which are already subject to responsible gambling safeguards. These will remain important factors to consider in the development of the country’s responsible gambling strategy.
It is currently challenging to assess the effectiveness of such responsible gambling measures, but it is certain that this area could have a significant possible impact on industry perception. Very careful discussion is needed on topics ranging from technology applications to region-specific measures.
It is currently difficult to assess the effectiveness of such responsible gambling measures, but it is certain that this area could have a significant potential impact on industry perception. Very careful discussion is needed on topics ranging from technology applications to region-specific measures.
How does JIRA aim to influence and coordinate its members’ social responsibility plans?
JIRA is actively promoting social accountability through the Sustainable Development Goals (SDGs).
The SDGs are a widely recognized concept across various industries, both in Japan and worldwide. We believe this framework aids in conveying the potential social responsibility endeavors of integrated resorts to diverse sectors and the general public.
JIRA will continue to advocate for the SDGs concept so that a greater number of companies within the industry will integrate these principles into their private sector development strategies and site requirement plans.
Examining other locations that have already established integrated resorts, such as Macau and Singapore, how can JIRA (and future IR operators) glean insights into what proves successful and what falls short?
The Japanese government has established specific requirements and regulations for IR operators vying for casino/IR licenses in Japan. Drawing upon prior and ongoing research and deliberation processes conducted by the government, international gambling/IR practices have been evaluated and assessed to formulate a “Japanese approach” to regulation.
From JIRA’s standpoint, we acknowledge and respect these processes, but we also recognize the necessity for the government to contemplate future international viewpoints. JIRA will collaborate with stakeholders to adapt to these perspectives.
The northernmost island of Japan has opted out of the competition to host a casino resort, citing environmental worries. Will other prospective locations follow suit? How will those involved in the project, including operators, authorities, and the Japan Integrated Resort Association, address these concerns?
The decision by Hokkaido could influence other potential locations, as there are inherent risks in the local decision-making process. The Hokkaido prefectural assembly is dominated by members of the Liberal Democratic Party (LDP), the ruling party in Japan, but the governor chose not to pursue one of the three licenses due to environmental concerns.
This exemplifies the intricacies that can arise in Japanese local politics.
What will happen next? Will the first venue be completed by 2024-25 as previously stated?
Following the formation of the Japan Casino Management Commission on January 7, most regional cities interested in integrated resorts will initiate the request for proposal (RFP) process in the coming months. This will commence around April, with operators being chosen so that proposals can be submitted to the Ministry of Land, Infrastructure, Transport and Tourism by July 2021.
The initial phase of Japanese integrated resorts will see a maximum of three venues licensed, with these opening around 2026.
Some suggest that the opening of integrated resorts will rapidly make Japan one of the world’s largest gambling markets. Do you concur?
Japan presents a significant opportunity for JIRA. The nation boasts exceptional amenities and substantial investments, drawing in numerous travelers.
However, Japan will soon encounter competition from other nations. Resorts must possess distinctive qualities and offer captivating cultural experiences to stand out.
JIRA believes that Japanese IRs must allure prominent visitors to achieve global success. It’s likely we’ll need to observe for a few years to assess their true performance.
The Japan IR Association aims to ensure that Japanese resorts attain global prominence.
Ayako Nakayama has been diligently developing the integrated resort sector in Japan. She established the Japan IR Association to foster industry growth. JIRA seeks collaboration with individuals from diverse nations, both within and beyond the industry. Ayako Nakayama has delivered numerous presentations on Japanese IR at conferences worldwide.
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