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Japan Postpones IR Application Period by 9 Months
By Jeff Osienya Oct 11, 2020 IndustryJapan has rescheduled the submission period for bids to the much-anticipated Integrated Resorts project by 9 more months. The process is now set to begin October next year with an April 2022 deadline.On Friday, Japan’s Ministry of Land, Infrastructure, Transport, and Tourism, via the Tokyo Japan Tourism Agency announced that the central government’s Integrated Resort (IR) applications timeline for interested cities will be delayed further. Initially, the submission period for IR applications in the country was to take place next year between 4th January and 30th July but now, the new deadline has been rescheduled to 28th April 2022, with a launch date of 1st October 2021.
According to the Agency, the debut timeline of brick and mortar casinos has been delayed by 9 months primarily because of the government and industry interruptions that have been brought by the Coronavirus pandemic. As big a blow as this may be, the announcement is not such a surprise given that in August, long before Friday’s announcement, Kazuyoshi Akaba, Japan’s Minister of Land, Infrastructure, Transport, and Tourism, had already expressed the woes of the IR plan in a part of his press statement when he said;
Quote“Some IR operators who have partnered with local governments are in a difficult situation due to the impact of COVID-19, and there have been opinions expressed that the future is uncertain,”
The central government has already approved licenses for three integrated resorts and so far, the largest cities in Japan; Osaka, Tokyo, and Yokohama have already expressed their interest, along with other smaller cities such as Wakayama and Nagasaki.
More Woes Blot Japan’s Plan to Bolster Its Tourism Sector
At first, Japan had hoped that the fist Integrated Resort would open its doors for business in 2025. The IRs would not only include casinos but they will also contain huge shopping outlets, and hotels, among other entertainment amenities. These Integrated Resorts are part of the country’s plan to boost tourism and channel tax revenue to strengthen local economies as Japan continues to deal with the effects of its dwindling population.
However, owing to this untimely delay, the earliest that casino gaming fans can flip cards on tables in IR casino floors in Japan is 2026 – which is still pretty optimistic given how things have been going of late.
Aside from the COVID-19 situation, the ambitious plans for IR resorts in Japan have in the past been held back by heavy opposition and criticisms from a public that’s cautious of the known negatives of problem gambling.
The ¥11.26 million bribery scandal and arrest of Tsukasa Akimoto, a high-profile legislator didn’t help the situation either. Akimoto was the former boss of Japan’s Ministry of Land, Infrastructure, Transport, and Tourism and he was found guilty of receiving bribes from Katsunori Nakazato and Masahiko Konno advisors to 500.com, a popular Chinese internet gaming company in return for favored treatment.
According to court proceedings, Nakazato and Konno admitted to paying Akimoto a sum of ¥3 million towards the end of 2017 and another ¥7.5 million at the beginning of 2018 to cater for Akimoto’s, traveling expenses when he visited 500.com’s Shenzhen headquarters. Kimihito Kamori, the chair of a travel agency by the name Kamori Kanko Co. was also indicted as an accomplice in the case after he was found to have paid Akimoto ¥760K to facilitate a family trip.
Big casino operators have also been pulling out of Japan’s IR plans. Las Vegas Sands withdrew its bid to contest in Yokohama’s IR back in May, and in August Wynn Resorts shut down its Yokohama office even though Matt Maddox, the Wynn CEO said that his company is still interested in the Japanese Market. MGM Resorts also raised eyebrows in August when its president and CEO Bill Hornbuckle said that while MGM was still chasing after Osaka’s IR opportunity, it could cancel the bid in case the venture is determined to be an unprofitable one by the company.
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