Japan approves controversial plans to build country’s first casino

Japan on Friday gave the green light to building the country’s first casino after a decades-long debate over a controversial plan that citizens fear would spark a rise in gambling addiction.

The sprawling complex will be built with an initial investment of 1.8tn yen ($13.5bn) in the western city of Osaka by 2029.

Apart from the casino, the 5.3 million square-foot area on Yumeshima will have hotels, a conference centre, a shopping mall, a museum, and a ferry terminal, as well as a helicopter pad for high-rollers.

"We hope (the casino) will become a tourism base that promotes Japan’s charms to the world," said Japanese prime minster Fumio Kishida.

Casinos and even private gambling have long remained illegal in Japan. But the Integrated Resort (IR) legislation passed in 2018 provided exceptions to games such as poker or baccarat to attract tourism business.

While opinion polls have shown citizens concerned about gambling addiction and crime, lawmakers of Mr Kishida’s Liberal Democratic party and casino industry laywers have relentlessly pushed for access to the world’s third-biggest economy.

The profits are estimated by some analysts at $20bn a year from at least three such casino complexes in the country.

The Osaka complex will be built by US casino operator MGM Resorts International and local partner Orix Corp , with each owning 40 per cent stake in the company that will manage the project.

Another 20 per cent will be shared by 20 local companies, including West Japan Rail, Sumitomo Mitsui Banking, and Osaka-based Panasonic.

Project officials are expecting to attract 6 million international tourists and 14 million domestic customers bringing a revenue of 520bn yen ($3.9bn) annually.

The project which was delayed by Covid pandemic and a corruption scandal was passed after the pro-casino Japan Innovation Party came to power in the prefectural governor and city mayor offices in Osaka on Sunday.

A poll by Mainichi newspaper this month found that 45 per cent of people were in favour of the casino while 38 per cent opposed it and 17 were undecided.

A 2021 government survey revealed that 2.8 million people which makes up for 2.2 per cent of the population were affected by gambling addiction.