Opening of the Integrated Casino Resort (IR) in Japan: Prospects for This Business

Andrew Price
Posted by Andrew Price
2WinPower Partner, owner of the gambling establishments network.
Updated: 09/10/2019

The Japanese are practical people who can get the most out of any event. Residents of the Land of the Rising Sun have a rational approach to the issue of organising gambling by casting their votes in 2014 and 2017 in favour of those parties that support the idea of creation of entertainment zones. In 2018, the government has made a final decision, according to which the integrated casino in Japan (IR) will appear in the near future.

Residents of those territories that have high chances of getting profit from gambling were the ones who supported the parties that promote the idea of ​​creation gambling zones the most actively. It shows that the Japanese have a positive attitude towards the gambling industry and are well aware of the potential benefits. It means that serious fighting may flare-up between the regions that apply for the licenses for the construction and development of the future establishment.

Integrated resort casino (IR) in Japan

Experts from 2WinPower offer you to figure out why the opening of a casino in Japan may be beneficial to entrepreneurs and how profitable it is to create a gambling business in this country.

The Gambling Project in Japan: Expected Profit

According to the estimates of specialists who work in the Fitch Ratings agency, the annual profit from the gambling IR may reach 4.5-8 billion euros, depending on the region and the location of the casino. The Japanese Ministry of Tourism expects that the flow of tourists will increase thanks to the casino resort, so the issue of the location of the object is more than relevant.

The government has defined standards for IR. In addition to gambling halls, it is necessary to build:

  • large hotels (they make high demands on their area);
  • conference rooms;
  • exhibition grounds;
  • additional infrastructural facilities.

Experts from Fitch Ratings are sure that although it will be expensive to build and maintaining the IR, all costs will quickly pay off. Those entrepreneurs who are planning to open their own gambling business will receive high profit.

Employees of the agency note that the gambling industry in Japan will develop normally and generate income only if an appropriate legal framework is created. The activities of offline and online business should be strictly regulated.

Where IR Will be Built: Eight Prime Contenders

Minister of Tourism and Transport Kadzuyosi Acaba who is responsible for land and infrastructure in Japan named eight regions that are perfect for the construction of a casino resort.

Opening an online casino in Japan

The list of these regions includes:

  • Tokyo;
  • Sasebo;
  • Nagoya;
  • Yokohama;
  • Osaka;
  • Chiba;
  • Hokkaido;
  • Wakayama.

The authorities of these territories have filed license applications to get a permit for building gambling establishments, and they are counting on high profit from the casino in the nearest future.

In addition to the listed regions that have already crossed swords, such cities as Kawasaki, Honshu, and Hamamatsu are planning to join their competitors.

The Participation of Major Foreign Casino Operators

A large-scale gambling project in Japan attracts not only local but also foreign investors. Specialists of the 2WinPower company have made a list of the biggest of them.

The company

Brief characteristics

Melco Resorts and Entertainment Limited

The gambling company from Hong Kong that owns casinos in Macau

Las Vegas Sands Corporation

The American corporation, the leader in the global gambling industry

MGM Resorts International

This company specialises in gambling and the hotel business

Galaxy Entertainment Group Limited

The Hong Kong concern opens and develops casinos, hotels, as well as shopping and entertainment centres

Genting Malaysia Berhad

The headquarters of the company is located in Malaysia but it builds casinos and hotels in other countries of the world

Hard Rock International

The company mostly deals with the restaurant business in more than 50 countries

Wynn Resorts

The operator of popular casinos and hotels. This company was founded by the legendary Steve Wynn

Giants of the gambling industry are interested in the development of a new Japanese project, and it is not easy to compete with them. However, you can choose an online business as a niche.

Prevention of Ludomania is a Momentous Issue

Although there are many supporters of the opening of a new casino resort in Japan, there are also opponents of such an idea. Society is worried about a possible increase in the number of addicted people. Inveterate opponents believe that the price that the country will pay for the profit from the gambling industry may be too high.

These concerns are not unfounded because, according to statistics for 2017, in Japan, the highest percentage of people who are suffering from ludomania is 3.6% (for comparison: in other countries this indicator does not exceed 2%). Therefore, on September 14 this year, large-scale protest actions took place in Toyonaka and Kanagawa.

The Japanese government is aware of the risks and is taking measures that should protect its citizens from ludomania. The number of visits to casinos for locals will be limited.

Conclusion

The leaders in the global gambling industry value highly the prospects for the Asian market. You can occupy your niche in the gambling sphere as well and open a profitable casino. Specialists from 2WinPower know how to do this.

Our company helps entrepreneurs to open land-based gambling halls and also creates online casinos that are attractive to players from different countries. We offer solutions from the world’s leading providers and take orders for the development of unique software products.

Contact us to learn more about the gambling industry, and launch your own profitable gambling project right now!

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