Japan’s election of new prime minister Sanae Takaichi signals continuity on casino resort policy

Japan has elected Sanae Takaichi as the country’s first female prime minister, marking a historic shift in national politics and reinforcing support for the country’s integrated resort (IR) policy amid ongoing economic challenges.

Takaichi, described by many as Japan’s “Iron Lady” for her ultraconservative views and admiration for former British leader Margaret Thatcher, secured 237 votes in the 465-seat lower house. Her victory followed a coalition agreement between her Liberal Democratic Party (LDP) and the right-leaning Japan Innovation Party, known as Ishin no Kai.

The new alliance, forged after the LDP’s election losses in the upper house in July, moves Japan’s government further to the right. However, the coalition remains short of a majority in both chambers, leaving Takaichi to navigate a fragile parliamentary balance.

Takaichi’s appointment comes as Japan faces rising inflation and questions over fiscal stability. The LDP–Ishin coalition is also expected to maintain close ties to Japan’s casino-resort policy, particularly the MGM Resorts International and Orix Corp project in Osaka, valued at JPY 1.27 trillion ($8.23 billion) and due for completion in 2030.

In 2013, Takaichi was the LDP lawmaker who submitted the first bill calling for the legalization of casinos, later leading to the Integrated Resort Promotion Act under former Prime Minister Shinzo Abe in 2018. Her support for land-based casino resorts contrasts with her hardline stance on online gambling.

“Online casinos are not only a source of funding for anonymous, mobile criminal groups, but they are also a major drain on Japanese wealth overseas, which is something we cannot overlook,” Takaichi told lawmakers at a Cabinet subcommittee meeting in March.

“At today’s joint meeting, I would like to thoroughly discuss what we can do quickly to eliminate the abundance of advertisements and posts that lead people to online casinos and to stop the spread of addiction as soon as possible,” she added.

The government is reportedly preparing a second round of IR license applications by 2027, which could see up to two more casino resorts approved under Japan’s existing framework that allows a maximum of three nationwide. Municipalities in Hokkaido, Yokosuka, and Yokohama are exploring bids, according to local media reports.

Analysts say Takaichi’s coalition with Ishin no Kai - whose political base is in Osaka, the first city to host an IR - cements the government’s continued backing of casino resorts as a tool for tourism and regional investment.

While the new prime minister faces headwinds from a divided parliament and a sluggish economy, her administration is expected to prioritize stability, investment, and continuity with Abe-era economic policies that position integrated resorts as a pillar of Japan’s growth strategy.