"Japanese casinos may have a fee like they do in Singapore where locals have to pay a fee to get into the casinos,” said Alex Bumazhny, a senior gaming analyst for Fitch Ratings. "All these things may constraint the actual amount of revenue that could be generated in Japan,” Bumazhny added.
Bumazhny, along with other economists, estimate that Japan’s potential casino revenue could reach approximately US$ 10 billion per year, which is what both Singapore and Las Vegas garner annually. Macau still has the most profitable gaming industry in the world, raking in around US$ 25 billion per year.
Japanese casinos’ potential revenues could be impacted further if restrictions are imposed on locals. Pachinko parlours, which are filled with machines similar to slot machines, are extremely popular among the Japanese. Requiring casinos to have an entrance fee would not allow the establishments to be on par with Pachinko parlors that require no payment upon entry.
"I don’t think Japan is going to catch up with Macau for the simple reason that I think Japanese lawmakers, when they’re making the bills, will limit the amount of gaming that could take place,” said Bumazhny. "What we’re talking about is two to three large integrated resorts, maybe a couple more regional type of small casinos, so limited amount of positions.”
Japan has until December 2017 to come up with the rules on how it wants to regulate the gambling industry for legislation talks to push through.
Source: GMB / innovategaming.com / moderntokyotimes.com
