Casino Supporter Wins Governor Race at Japan’s Wakayama Prefecture

Gov. Nisaka is an active supporter of Wakayama’s bid to become one of the hosts of Japan’s first casino resorts

An avid casino supporter has just secured a fourth consecutive term as Governor of the Japanese prefecture of Wakayama, the Japan Times reported. Liberal Democratic Party-backed Gov. Yoshinobu Nisaka beat on Sunday his sole challenger Masayoshi Hatanaka, who was supported by the Japanese Communist Party and who has previously voiced opposition to the development of a casino resort in Wakayama.

During his campaign, Gov. Nisaka said that a casino was just what Wakayama needed to revive its economy. As he is stepping into his fourth term, the Governor will certainly make sure that the prefecture will be bidding heavily to win one of the three casino licenses the Japanese government is set to issue under the country’s new gambling law.

Japan legalized casino gambling in December 2016 by passing the Integrated Resort Promotion Bill. Lawmakers approved a separate piece of legislation this past summer, the Integrated Resort Implementation Bill, which set out the rules under which the country’s gambling industry would be regulated. As mentioned earlier, there will be three gaming licenses available, and casinos will only be allowed within larger integrated resorts.

The impact the expansion of the country’s gambling industry will have on problem gambling rates has been one of the most widely discussed topics since the legalization of casinos. Problem gambling concerns were also voiced before Gov. Nisaka during his campaigning.

In an attempt to placate those concerns, the official said that measures could be taken for any casino in his prefecture to restrict Japanese customers’ access to the actual gaming floor. Such customers would have to meet certain prefecture-introduced requirements in order to be allowed to gamble, the Governor said.

Mr. Nisaka also proposed that Japanese be issued special cash cards with an upper limit to use at casinos. Proceeds from that system could be used to “fund support policies for dealing with problem gamblers,” the official also pointed out during one of his campaign speeches earlier this year.

The Governor envisions an integrated resort in the town of Marina City, located on an artificial island, with 2,500 hotel rooms, a conference hall, and a VR game center in addition to the casino. According to preliminary estimates, a JPY280-billion (approx. $2.5-billion) resort in Wakayama could annually generate JPY140 billion (approx. $1.2 billion) in sales. However, many analysts have been extremely skeptical of the potential of a casino establishment in the region.

Competition in Kansai

As Gov. Nisaka was re-elected, the official will certainly intensify his push for a casino in his prefecture. However, there is one more bidder for a gaming license in the Kansai region, of which Wakayama is also part, and that second bidder has been considered one of the favorites to win the rights to host one of the country’s integrated resorts with gaming floors.

Osaka has been one of the heavy favorites almost since the casino debate was kindled in the country well over a decade ago. It has strong support from local officials and the business community and massive interest from major international gaming and hospitality companies.

Late last week, Osaka was selected as the host city of 2025 World Expo, beating Azerbaijan’s capital Baku and the Russian city of Ekaterinburg. Local politicians have previously expressed hopes that if the city wins the bid for hosting the world fair, this would significantly boost the city of Osaka and the prefecture’s chance to win a casino license.

Osaka aims to open an integrated resort with a casino floor on the man-made island of Yumeshima in Osaka Bay. It will look to launch the complex just in time for the expo to capitalize on the increased flow of international visitors.

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