Analysts believe that major casino operators could reduce or even back off from investment plans for the construction of integrated resorts in Japan, after an advisory panel recommended on Monday too strict regulations for the operation of the country’s nascent casino industry.
A group of politicians, vested with the creation of a regulatory framework for the operation of the future casino complexes, held its final meeting on Monday.
The panel proposed the implementation of an entry fee for Japanese nationals as well as other measures that would limit their access to casinos. (READ SO: JAPAN WANTS CASINOS ONLY FOR FOREIGNERS)
In addition, a previously reported possibility for a limit on the maximum casino floor space was also confirmed as one of the proposals to be included in a set of recommendations that is expected to be submitted to Japanese President Shinzo Abe in the days to come.
If the casino floor proposal is approved, that would mean that casinos would only occupy 15,000 square meters of space, which according to industry analysts and executives is too little to justify larger investment in a project of this type. (READ SO: ONE OF THE ASIAN TIGERS COULD BE THE THIRD GLOBAL POTENTIAL GAMBLING MARKET)
Casino gambling became legal in Japan in December 2016. However, the onus is now on the Diet (Japan’s government) to craft a new bill that would regulate the country’s casino industry. Politicians have announced a late 2017 deadline to implement that plan.
