Japan Approves Plan to Open its First Casino

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Facts

• A group that includes US-based MGM Resorts and Japan's Orix Corp. won approval from Japanese officials on Friday to build the country's first-ever casino, a 5.3 million-square-foot resort in the city of Osaka that's estimated to cost ¥1.08T ($8.2B) by 2029.¹
• The resort — in which MGM and Orix will each have a 40% stake, with the other 20% divided among local companies — will include a hotel, conference center, shopping mall, and museum.²
• Casinos were illegal in Japan until a 2018 law gave exceptions for games like poker and baccarat. While opponents claim it will lead to more gambling addiction, the Liberal Democratic Party has claimed it will boost tourism, with the Osaka resort projected to attract 6M international and 14M domestic visitors annually.³
• While supporters lobbied for access to what some estimate could be a $20B a year industry if three complexes are built, a national poll conducted after the 2018 law was passed showed 64.8% opposed building casinos, with 27.6% in favor. However, a recent Osaka poll showed 45% in favor to 38% opposed.⁴
• To address a 2021 government survey that found 2.2% of the country was affected by gambling addiction, Japanese citizens will have to pay a ¥6K fee for every 24 hours they spend in the casino, with a portion to go toward addiction measures.⁴
• As the Osaka project nears final approval, Nagasaki Prefecture has also applied to host a ¥438B casino resort at the Huis Ten Bosch theme park in Sasebo, which it aims to open in 2027, though most investors for that project are still undisclosed.⁵

Sources: ¹Wall Street Journal, ²BBC News, ³South china morning post, ⁴Guardian and ⁵The asahi shimbun.

Narratives

• Narrative A, as provided by Realmoney. Japan should invest in business and job growth, but not to enrich casino corporations at the expense of its traditional culture and values. Companies always overestimate the financial gains resorts will bring to the economy, so those projections should be taken with a grain of salt. Besides, any potential economic growth won't outweigh the costs of organized crime and gambling addiction that the majority of Japanese citizens have expressed concerns over time and time again.
• Narrative B, as provided by Japan today. Osaka was one of only two prefectures to submit a bid for this resort, which means the city desperately wants to add the newly-legalized casino business to its economy. Its residents  — who approve of the casino far more than they disapprove — have every right to welcome new economic opportunities to their city. Japan has been looking to boost its tourism economy for some time, and now that they have investors, that goal shouldn't be hindered just because other parts of the country oppose it.