Legislation
Japan – Smaller Japanese towns in the running for casinos
By Phil - 29 November 2013
Whilst much of the focus on a future Japanese casino sector remains firmly on the big cities of Tokyo and Osaka, a host of smaller towns including the beach resort of Okinawa, the mountain resort of Hokkaido, the sea ports of Sasebo, Otaru, Tomakomai and Kushiro and the spa towns of Atami and Naruto, are all vying for the opportunity.
Indeed legislators are proposing two types of licenses; one for large integrated resorts operated by global companies featuring convention and entertainment and another for smaller resorts in the countryside.
Sasebo, a port city on Japan’s westernmost island, is hoping to develop a casino to add to the entertainment offering Huis Ten Bosch, a theme park based on a 17th century Dutch town.
Located in Nagasaki Prefecture, business and political leaders want to see a casino built alongside the windmills, Dutch buildings and canals of the theme park. Its name Huis Ten Bosch literally translates into English as ‘House in the Forest.’ The development would include a hotel and entertainment facilities in addition to gaming tables and slot machines and would be capable of earning nearly $1bn in annual GGR. The hope is to attract tourists from China, South Korea and Taiwan.
The park’s heyday was 1996 when it recorded 4.25m visitors. It was declared bankrupt in 2003 due to the dip in the economy in Japan with debt of 220bn yen. The rebuilding plan was sponsored by Nomura Principal Finance Company until March 2010, when HIS a travel agency, took over the management by investing 2bn yen.
Hideo Sawada, the Chairman of HIS said of the casino plan: “Tokyo shouldn’t absorb everything. We need balanced growth between Tokyo and the local cities.”
Other Japanese towns share his view with two traditional hot springs towns; Atami, in Shizuoka Prefecture, and Naruto, in Tokushima Prefecture both looking at how the German spa town of Baden Baden benefitted from casino gaming.
Interestingly both Casinos Austria and Grand Casino Luzern in Switzerland are reportedly considering investing in Japan should the market open up.
Elsewhere, Japan’s most northerly island; Hokkaido is proving a popular location for potential development. So far three locations have been put forward as being ripe for casino gaming. The port towns of Otaru and Tomakomai and Kushiro on the eastern coast are believed to be some of the most attractive spots outside the big cities. Casinos Austria is believed to have shown interest in the harbour town of Otaru where Mayor Yoshiharu Nakamatsu believes a casino in the town’s canal district or on board a moored cruise ship would see tourists travelling through to Sapporo, the biggest city on Hokkaido, stay longer.
Officials from US giant Caesars Entertainment meanwhile believe that both Hokkaido and Okinawa could prove a profitable investment. One executive said Caesars would be as comfortable operating ‘an urban resort in Tokyo or Osaka, a beach resort in Okinawa, or a mountain resort in Hokkaido.’
In Atami, a hot springs town in central Japan, a local hotelier has proposed a pyramid shaped casino development should deregulation arrive.
It is believed politicians are keen to limit the number of licenses to locations promising the biggest economic return. Whilst legislators have not set the number of licences to be granted in stone, it is believed that two licenses could be granted to the larger cities and two to regional economies. The bill legalising casinos could even be submitted to the current session of parliament.
Seiko Noda, the chairman of the LDP’s General Council said she thought it would be submitted in the session ending December 6. “This is a first for Japan. It will be a step toward building up Japan’s status as a tourist destination,” she said.
