Japan considers 30 per cent tax rate on casino revenue

According to industry insiders, the Japanese government is considering a 30 percent-tax collection on the revenue made by operators of casinos located at national integrated resorts. Revenue from the tax will cover administrative costs at a regulatory body and also support the central government and the governments of the local communities that host the casinos. For casino operators whose annual revenue exceeds USD 2.8 billion, the government may impose higher tax rates on revenue in excess of that amount.

After discussions with the ruling Liberal Democratic Party and its Komeito ally, the central government hopes to include a specific tax rate in planned legislation related to the operations of integrated resorts, which is expected to be submitted to the current regular session of the Diet, the sources said Monday.

Specifically, it plans to set the rate at about 40 percent for the portion from over USD 2.8 billion to USD 3.75 billion and at about 50 percent for the portion from over USD 3.75 billion to USD 4.69 billion, the sources said.

According to estimates by the government, the burden of comparable casino taxes stands at some 20 percent in the U.S. state of Nevada, some 30 percent in Singapore and some 40 percent in Macau.

The government believes the casino tax rate in Japan should be set at a level that secures adequate funding for social security provisions and measures against gambling addiction, while helping casinos survive in competition against those overseas, the sources said.