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Japan – Japanese government compromises on three Integrated Resorts

By - 3 April 2018

The initial wave of Integrated Resorts in Japan will see just three casinos introduced following an agreement struck between Japan’s ruling Liberal Democratic Party (LDP) and its junior coalition partner Komeito.

The Government had wanted five Integrated Resorts but compromised on three with an agreement that legislators will review their success and potentially issue more licences after seven years rather than the initially stated 10-years.

The two parties have also struck on a deal on the entrance fee to be charged to locals with a fee of ¥6,000 (US$56) being settled on. Komeito had wanted an ¥8,000 fee whilst the LDP was looking at ¥5,000 having initially wanted just ¥2,000.

The LDP has now agreed on 10 out of 11 of the issues regarding the implementation bill which is now expected to be delivered in May. Gaming floor sizes must be kept to a maximum of three per cent of the resort’s foot print rather than the 15,000 square foot previously promoted.

The number of visits has been limited to three times in seven consecutive days or 10 times in 28 consecutive days.
Operators will also need to file reports on customers, with details including their name, address, and birth date, who deposit or withdraw more than 1m yen ($9,500) during any given 24-hour period.

Reports out of Japan also believe that a flat tax rate of 30 per cent has been agreed on as opposed to a sliding tax rate of between 30 and 50 per cent dependent on annual revenue. Discussions are still ongoing with regards to the role of fixed percentages local partners must have in the resorts.

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