Japan's parliament has recently passed a bill legalising gambling. For several years, discussions regarding the construction of multi-billion-dollar integrated resorts have been ongoing.
This is a controversial decision, although the prospects for economic development are clear. Many are sceptical that Japan can become a new global entertainment centre.
Experts believe that operators will focus on developing the domestic sector, so the appearance of anything new at the level of global industry giants should not be expected.
Casino Market’s team gathered the opinions of experienced professionals on the latest innovations in Japan's iGaming sector.
More Details About the Changes
Until 2013, the United States was considered the largest gambling market. However, Asia has managed to leave it behind. Many people believe that the new participant will continue to occupy a leading position.
Until 2002, tycoon Stanley Ho controlled the entire casino industry in Macao, but the Chinese government ended this monopoly. The region benefited from this, as its gross revenue exceeded $28 billion, surpassing even Las Vegas.
The Asian gambling market is currently growing, driven by Singapore and Macao. However, analysts suspect that a new player will soon emerge.
Japan, a highly developed country, is the last to legalise gambling. The 1st integrated resort was opened there in 2024. According to CNBC forecasts, local entertainment establishments could bring $40 billion annually to the state treasury.
Expert Insights
Grant Govertsen, Director and Head of Research at Asia Equity Union Gaming, believes that the adoption of a bill on casino activities has created a new economic incentive that can expand the tourism sphere and generate new jobs for Japan's residents.
Locals have been playing pachinko for many years. It is an arcade similar to pinball. According to research conducted in 2014, one in 20 Japanese citizens suffers from ludomania.
Compared to other developed countries, where the number of gambling addicts does not exceed 1% of the population, Japan's statistics appear depressing. However, the high demand for slots here suggests that the entertainment sector has real development prospects.
Akiyoshi Tsuruoka, CEO and Editor of Gaming Capital Market, said that ludomania was obviously an obstacle to the adoption of the law. A lack of information about planned casino openings sparked public concern, even though the bill clearly outlines countermeasures to prevent such a disease.
Some analysts claim the country is capable of becoming a major global gambling centre. The market could emerge as a main competitor to Las Vegas and Macau. Locals enjoy this kind of leisure. Moreover, Japan is considered one of the top Asian tourist destinations.
According to Desmond Lam, Professor at the University of Macao, the region is renowned for its quality of service, a unique culture that attracts many travellers, and high-end amenities such as the transportation interchange. Casinos must take advantage of it to develop their proposals. The country is an ideal base for establishing a new market. Now everything depends on operators and their willingness to embrace new opportunities.
It is too early to say whether the jurisdiction will affect other states' revenues. Most specialists consider such a scenario to be unlikely.
Mr Govertsen added that Japan will not affect established markets. The only one who may suffer is Korea, since a significant share of the local gambling niche relies on Japanese players. However, they rarely visit Macao and Las Vegas, so the development of the domestic sector will not impact the gross revenue of global industry giants.
Mr Tsuruoka also believes Japan will not threaten Macao's well-being. These regions are unlikely to compete, as they target different audiences. Japan is not primarily focused on gambling enthusiasts and is pinning its hopes on all entertainment resorts. However, it is still possible that the opening of Japanese casinos will have some impact on Macau.
Enviable Overseas
Experts predict the appearance of severe restrictions, which could affect the region's performance. However, major operators were encouraged by Japan's legalisation of gaming.
Many have already begun formulating strategies to obtain the desired licence, and the land of the rising sun will be glad to welcome foreign companies.
Article 2.1 of the gambling law states that an integrated resort may include entertainment locations and other facilities managed by private enterprises if they are deemed useful for tourism development. This means that regulations create favourable conditions for both local and foreign brands.
Before applying for a casino licence, operators need to review the factors identified by the relevant authorities. They will be established in Japan very soon, as many issues still need to be resolved promptly.
Questions that still need to be answered include:
- Might there be a need for a local partnership?
- Will Japanese citizens be restricted from placing bets?
- What will the tax system be like?
Mr Govertsen believes that all of this will significantly affect international corporations' intentions to enter the new market. Foreign companies will compete fiercely for Japanese permits, as the government is likely to issue only a limited number.
The country will open its gambling niche to global operators. Authorities are prepared to allocate a separate zone for integrated resorts, which will be granted to 1–2 casino brands, Mr Tsuruoka promises.
Anticipating the inevitable struggle for Japanese licences, international enterprises are beginning to form alliances with local firms to secure a competitive advantage.
The expert explains that it is difficult to imagine a single company gaining full control over an integrated resort. Real estate and infrastructure will be monitored by local authorities, while the government will oversee the casino development.
While it is still unclear what to expect from Japan, operators have long been competing for licences. Melco Crown Entertainment Limited, MGM Resorts, and Las Vegas Sands have already officially announced their willingness to invest billions of dollars in the country’s integrated resorts.
Analysts predict that if Japan does allow foreign brands into the country, it will adopt a Singapore model: a limited number of permits and special measures for the population.
There is a widespread belief that the jurisdiction has the potential to become an important figure in the international arena. Integrated casino resorts and authentic sights will certainly be interesting to many travellers.
By the end of this year, the authorities expect to attract 40 million people, turning the country into a 2nd Las Vegas. Whether this region will reach the level of Las Vegas and Macau, we will find out soon.
The Main Things About the Japanese Gambling Niche
To succeed in the competitive global entertainment sector, it is essential to stay up to date with the latest news and trends.
The Casino Market studio diligently monitors the current industry situation and is ready to help you launch a profitable gambling business in Japan.
We also offer the following useful solutions:
- a turnkey platform;
- a White Label portal;
- modern content;
- security software, and much more.
For questions, please contact our managers.
Have questions or want to order services?
Contact our consultants:
- e-mail: manager@casino-market.com
- feedback form.
Check the information used to contact us carefully. It is necessary for your safety.
Fraudsters can use contacts that look like ours to scam customers. Therefore, we ask you to enter only the addresses that are indicated on our official website.
Be careful! Our team is not responsible for the activities of persons using similar contact details.
