On March 27, 2018, the Bill to Arrange Specified Integrated Resort Facilities Areas was submitted to the Diet. Pursuant to the Act Concerning Promotion of Development of Specified Integrated Resort Facilities Areas, discussed in the December 2016/January 2017 issue, the Bill will allow for the implementation of legislative measures necessary to promote the development of areas where specified integrated resort facilities ("Integrated Resorts") will be established. The main contents of the Bill are as follows:
Regulations Concerning the Establishment of Integrated Resorts. Integrated Resorts are defined as integrated facilities mainly consisting of casino facilities, as well as facilities for international conferences, exhibitions, Japanese cultural performances, the provision of domestic sightseeing services, and accommodations. Integrated Resorts may be established upon the approval of area development plans jointly prepared by local governments and private businesses (up to a maximum of three plans for all of Japan) by the Minister of Land, Infrastructure and Transport.
Regulations for Casino Businesses. In addition to the approval of an area development plan, casino businesses require a license (with a renewable three-year term) issued by the Casino Management Committee, which will be established as an external bureau of the Cabinet. Furthermore, in order to become the main shareholder of a casino business, the operator of a business that manages and makes use of casino facilities, the land owner of an Integrated Resort area, or a manufacturer of casino-related equipment, a license, permission, or approval from the Casino Management Committee is required.
Entrance Fees and Taxes. Excluding foreign citizens who do not reside in Japan, no individual may enter a casino facility more than three times in a seven-day period or more than 10 times in a 28-day period, and each such individual is subject to a 3,000 JPY entrance fee imposed by the national government and the local government (for a total of 6,000 JPY) every 24 hours. The casino business must collect these entrance fees and transfer the funds to the national and local governments. In addition, each month, the casino business must pay a tax of 15 percent of gross gaming revenue to both the national and local governments and must pay certain Casino Management Committee fees to the national government.
The Bill will be implemented within three years from the date of promulgation. Since the Bill establishes a specific framework for casino regulations in Japan, Diet deliberations will need to occur.
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