Legislation
Japan – Diet Day for Japan with IR Implementation Bill expected to pass imminenetly
By Phil - 20 July 2018
Today is expected to be the day that Japan’s IR Implementation Bill becomes following the approval of a second piece of legislation yesterday in the upper chamber for Japan’s parliament.
The IR Implementation Bill is being widely tipped to be approved today in a plenary session of the House of Councillors. It will then be endorsed by Prime Minister Abe’s Liberal Democratic Party, coalition partner Komeito and opposition Japan Innovation Party before the current Diet session finishes on Sunday.
The approval of the bill will open up the tender process for casino in three yet-to-be-specified locations. There is still expected to be some opposition with the Constitutional Party already presenting a no-confidence motion against House of Councillors President Chuichi Date saying he should have concentrated instead on assisting the nation following torrential rain that has caused landslides and widespread flooding but it was voted against.
Casino opponents are also believed to have prepared a motion against Prime Minister Shinzo Abe to prevent passage of the bill, however the LDP looks set to pass the bill during a full session of the Upper House today.
Osaka City is believed to be “a leading candidate” to host an IR, according to analysts led by Masashi Akutsu.
SMBC Nikko said there would be ‘major earnings impacts’ for companies winning out in the tender to run integrate resorts with the government’s plan to limit the number of facilities giving the successful operators a ‘virtual monopoly.’
The favourites are expected to come from Macau or the Philippines with Wynn Macau, Sands China, Melco International Development, MGM China Holdings, Galaxy Entertainment Group, SJM Holdings, Genting Singapore and Bloomberry Resorts all in the running due to the experience in Asia.
There has been no indication yet as to how the operating companies will be structured but there will be some involvement required by local Japanese companies. Orix, Sega Sammy, Fuji Media, Konami, Glory, HIS, Japan Cash Machine, Universal Entertainment and Oriental Land are all believed to be well positioned.
