Casino operators push back against Japan possible regulations

A key advisory panel on Monday held its final meeting on the future possible rules, proposing a limit on casino floor space and curbs on entry by Japanese nationals. The panel is expected to submit its proposals to Prime Minister Shinzo Abe within days.

Bureaucrats have looked at a limit of 15,000-square-metres, casino and government sources said, though the panel proposed only an "upper limit" and said specific figures would be set after wider consultations.

Casino executives said the 15,000-square-metre limit could hit foreign investment and neutralize the economic impact of resorts. "The current plans risk missing the mark on achieving public policy objectives," one casino executive said they had told bureaucrats. "It's serious enough to halve the maximum investment we're willing to make."

At stake, say executives and industry representatives, is the potential revenue from casinos and the potential size of their boost to Japan's economy.

A senior source with direct knowledge of the government's position told Reuters bureaucrats are minded to impose stricter rules on casinos to placate public opposition. "There's a need to balance the promotion of integrated resorts with caution and listening to the public's views," the source said.

Las Vegas Sands and MGM Resorts International are among foreign operators vying to win licenses to run a Japanese casino resort. The US pair have previously said they would plough up to US$ 10 billion respectively into a project.

But investment of that size could be cut if the 15,000-square-metre limit is pushed through, said Seth Sulkin, chair of a taskforce at the American Chamber of Commerce Japan working on casino resorts.

"Gaming companies are very rational: they'll calculate how much revenue they can generate with a 15,000-square-metre casino floor, and they will only invest as appropriate for that, which certainly won't be US$ 10 billion," Sulkin said.