…Researched and contributed by Solomon Thomas.
Japan’s government has approved a plan to build the country’s first legal casino in Osaka.
The plan aims to draw tourists and stimulate economic development in the region.
The “integrated resort” (IR) facility will combine casinos, convention centers, hotels, restaurants, and entertainment venues.
The Osaka plan, which is expected to open by 2029, was approved after “sufficient examination from various perspectives.”
Prime Minister Fumio Kishida welcomed the decision and said that the complex would become a tourism base that would promote the charm of Japan to the world.
Legalization of Casinos in Japan and Public Concerns
Japan was the only developed nation that banned casinos until it passed legislation in 2016 that paved the way to make the industry legal.
The approval of IR facilities was passed by parliament in 2018.
However, critics have warned that legalizing casinos could worsen the country’s already significant gambling problem.
A pair of NGOs dealing with gambling addiction expressed concerns in an open statement to government officials, citing a surge in requests for help from young people addicted to gambling via smartphones and illegal online casinos.
According to a 2021 government survey, about 2.2% of the population, or 2.8 million people, were affected by gambling addiction.
IR Complex and its Economic Impact
The Osaka IR will be run by a company led by MGM Resorts International’s Japan unit and financial services company Orix, in consortium with around 20 local companies.
The complex will include three hotels with a combined 2,500 rooms, an international conference hall, and exhibition facilities.
The Osaka government estimates the IR’s economic impact at an annual 1.14 trillion yen ($8.6 billion), with 15,000 jobs created inside the facilities.
It expects a total of 20 million visitors annually from inside and outside Japan, with sales of 520 billion yen, 80% of which would come from casinos.
Commentary:
The approval of the plan to build Japan’s first legal casino in Osaka is a significant development for the country’s tourism industry and economy.
The IR complex is expected to attract a large number of visitors and create numerous job opportunities.
However, the legalization of casinos has also raised concerns about the potential for exacerbating gambling addiction in the country.
The government’s requirement for IR complexes to submit plans to prevent gambling addiction and to impose a fee on Japanese citizens for every 24 hours in a casino are measures aimed at addressing these concerns.
The Osaka IR will be run by a consortium led by MGM Resorts International’s Japan unit and Orix, which is expected to generate significant revenue for the companies involved.
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