During the first session of the JGC, leading politicians from several Japan’s political parties set out some of the themes still being discussed and the progress made to date on the necessary bills to allow for the introduction of IRs.
The requested amendments and differing political priorities have led to concern that the legislation may once again miss the deadline for passage, pushing back further the likely date for the first round of IR openings.
Kiyohiko Toyama, a member of the House of Representatives and head of the IR team for the Komeito Party, said both the ruling coalition and opposition parties were aiming to discuss issues relating to the problem gambling bill in the next few weeks in an effort to present a unified bill.
“Cooperating with the LDP and the opposition, we would like to have both bills passed in both the Lower House and the Upper House before this session ends on June 20th,” he said.
However, the discussion highlighted many of the differing views held even between politicians in favor of promoting IRs in the country, and it’s far from clear if they will be able to make progress in the short time remaining of the Ordinary Diet Session.
Some of the issues raised were the taxation rates, the short length of the casino license, and the laborious process for approving the resorts, which will mean Japan will miss key opportunities to showcase its IRs at major events such as the Tokyo Olympics in 2020 and possibly even the 2025 World Expo in Osaka (should that city win its bid for the expo).
There was also discussion as to whether the IRs should be placed in main urban locations or in the country’s rural regions. Some have asserted that the law as it stands will favor major cities.
Masashi Adachi, secretary-general of the IR implementation team within the ruling Liberal Democratic Party, said 2026 will be the earliest possible date for opening, but contradicted assertions from Kakizawa that 2030 was more likely.
Toyama also contested claims by Kakizawa that the tax rate, after factoring in consumption taxes and corporate taxes, may end up being as high as 50 percent, insisting that the effective rate will end up being close to 31 to 32 percent.
Japan will not be using junkets and will not be differentiating between mass and VIP when it comes to taxation, unlike it some other markets such as Singapore. These are both likely to be factors that may encourage a focus on mass and premium mass.
Source: GMB / AG Brief
