International edition
June 23, 2021

With a total of 68 articles, to be commented by related parties

Japanese lawmakers released their proposed draft of Casino Act

(Japan).- The General Assembly of International Sightseeing Industry Development Diet Member Association was held and released proposed draft of so-to-speak Casino Act. The so-called Casino Diet Member Association in Japan held its general assembly and released a proposed draft of so-to-speak Casino Act on August 5.

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epresentative Koga, Chairman of the Association, Representative Iwaya, Chairman Representative of the Association, Representative Ishii and Representative Suzuki, Advisors of Association, together with around 15 members of the entity, attended to the meeting. In addition, around 30-40 attendees from outside of the Diet were present.

The surprising matter at the Assembly was that the Association released a relatively detailed proposed draft of Casino Act with a total of 68 articles. Chairman Koga mentioned that this draft is supposed to be commented by related parties, including other diet members, government officials and other stake-holders, including public.

He emphasized that it is extremely important to share the entire concept of this proposal so that there would be a certain nation level agreement. It is expected that revised draft reflecting the above described comments will be discussed at the normal assembly of Diet in the financial year 2011.

Although there are a number of issues to be further discussed, this draft shows the current basic concept of the legal structure of expected casino regulation contemplated by Chairman Koga and the advisor of the Assembly, Mihara, Director of The Institute of Amusement Industry Studies at Osaka University of Commerce, as follows.

1. Firstly two sites are expected to be appointed by the Government and maximum of ten sites are considered based on the performance of the first two sites.

2. Although basic procedure to the above mentioned appointment would be determined by the Government, actual proposal for the appointment would be originated by local government.

3. Operation of each facility in the appointed sites would be executed by private entities which shall be licensed by the Casino Administration Organization to be established under the Cabinet Office.

4. All necessary investment for the operation including regulatory cost as well as prevention cost of gambling dependence syndrome shall be absorbed by the private entity to operate the facility.

5. All management members, major shareholders, employees, equipment suppliers, etc. shall be licensed and activity of the private entity licensed to operate facility would be
under control and inspection.

First somewhat surprising aspect of the proposed act was that this seems to be a kind of special treatment just for entertainment site including casino, so that there is not any legal consideration made with respect to the contradiction of this act with Japanese criminal code prohibiting gambling. Secondly, this draft does not seem to have been reflecting the possible negative reaction from Pachiko Pachi-Slot industry, which are not allowed to exchange win with local currency.

At the Assembly, a few questions were raised such as the negative impact to the local economy under the voluntary retreat of operator, necessity of the comparative research among various licensing and control methodology in the world as well as the viability of casino operation in the relatively rural area in Japan.

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