In a significant move for the gaming industry, regulators in Pennsylvania and Nevada have joined forces with Japan to strengthen oversight of the country’s emerging casino landscape. This collaborative effort comes in response to Japan’s 2018 “Integrated Resort Development Act,” a groundbreaking legislative measure aimed at diversifying the nation’s economy through tourism.
Japan’s Casino Aspirations
The Integrated Resort Development Act, a brainchild of the late Prime Minister Shinzo Abe, laid the foundation for Japan’s casino industry. Although Abe is no longer with us, his vision lives on through his party, the Liberal Democratic Party (LDP), which continues to support his casino initiative. Under this law, Japan can host up to three integrated casino resorts, offering an enticing prospect for global gaming giants.
Despite this potential, progress has been slow, with only one project receiving approval in over five years. MGM Resorts, in partnership with Japanese financial conglomerate Orix Corporation, is spearheading the MGM Osaka development. However, this ambitious project is not slated to open its doors until at least 2030, owing to its construction on reclaimed land in Osaka Bay, covering a staggering 5.3 million square feet of indoor space on over 100 acres.
Nagasaki’s Casino Ambitions
While Osaka pushes forward with its casino venture, Nagasaki and Casinos Austria express interest in building a casino at the Huis Ten Bosch theme park in Sasebo. Yet, the road to licensing approval has been fraught with funding challenges, leaving the fate of this project hanging in the balance.
Suitability in Focus
With casino gaming still in its infancy in Japan, the newly-formed Casino Regulatory Commission faces a steep learning curve. To bridge this knowledge gap, the commission has turned to the United States, seeking guidance from the gaming veterans. Comprising a team of over 170 experts and chaired by Michio Kitamura, the commission recently embarked on a fact-finding mission that took them to two key gaming states: Nevada and Pennsylvania.
Their primary focus during these visits was to glean insights into best practices for conducting background investigations. The commission engaged in extensive discussions with the Nevada Gaming Control Board and the Pennsylvania Gaming Control Board.
Kevin O’Toole, Executive Director of the PGCB, highlighted the Japanese delegation’s diligence, stating, “They’re very focused on learning as much as they can. Their primary focus was best practices for conducting background investigations.”
Learning from the Best
Nevada and Pennsylvania are not chosen randomly. They stand as the two wealthiest gaming states in the United States, with Nevada’s gaming revenue surpassing $14.8 billion last year and Pennsylvania’s reaching an impressive $5.21 billion, closely trailed by New Jersey.
Operational Governance
Beyond background checks, discussions also revolved around operational oversight. Pennsylvania boasts one of the most comprehensive gaming landscapes globally, comprising 18 brick-and-mortar casinos, regulated iGaming, retail and online sports betting, video gaming terminals in truck stops, and daily fantasy sports.
The Japanese delegation probed into how the PGCB manages gaming operations and inquired about the regulations and safeguards in place—a crucial step as Japan prepares for the eventual opening of its casino doors.
Paying It Forward
Kevin O’Toole concluded by expressing Pennsylvania’s willingness to “pay it forward.” He noted that the state had once received guidance from older U.S. gaming states like Nevada and New Jersey more than 17 years ago. Now, Pennsylvania eagerly shares its wealth of knowledge to support a new gaming jurisdiction as Japan takes its first steps into the thrilling world of casino gaming.
In a global gaming industry marked by collaboration and exchange of expertise, this partnership between the United States and Japan signifies a significant milestone on Japan’s journey towards becoming a prominent player in the world of casinos and integrated resorts. With these insights, Japan’s Casino Regulatory Commission is better equipped to navigate the intricate web of casino oversight, ensuring a successful and responsible gaming future for the Land of the Rising Sun.
