Tarnished Gems
10
Tarnished Gems
Japan and Brazil are still waiting for the casino boom
For several years now , either Japan or Brazil or both have made the “ 10 Trends ” feature in GGB magazine . With massive populations and needs for tax revenue , employment and tourism , both countries are “ no-brainers ” when it comes to the introduction of casinos and / or integrated resorts . But neither country has fully pulled the trigger in such a manner that they ’ d gain the complete benefits of a land-based gaming industry .
After long and bitter negotiations , with the support of the late prime minister Shinzo Abe — but opposed by a large majority of Japanese citizens — Japan actually legalized casino gaming as part of an integrated resort . But then the opposition kicked in . Because local referendums were necessary to approve integrated resorts in any city , the interest of more than a dozen Japanese cities was whittled down to just two : Nagasaki and Osaka .
Since the first round of IRs in Japan was supposed to be three licenses , it ’ s not a huge shock to see only two cities as the finalists . But there ’ s still a long way to go before the doors open on either resort .
In Nagasaki , the IR will be located in the town of Sasebo at the site of the Dutch theme park Huis Ten Bosch . The theme park opened in 1992 and has struggled with attendance its entire existence , actually declaring bankruptcy in 2003 . Now , on the eve of the IR approval , it may be sold . Nonetheless , the winning bid came from operator Casinos Austria , which plans a $ 3.2 billion complex with four hotels , extensive MICE space , and a casino featuring 3,000 slots and at least 400 table games .
In Osaka , MGM Resorts has partnered with the Japanese company Orix for an IR on Yumeshima Island , a man-made structure in the bay . The $ 13.3 billion project is a mixed-use development , of which part will be the MGM Osaka IR .
Public opposition to the project has been strong , but Osaka officials were forceful in keeping a second plebiscite on the project from happening . But concerns about flooding and infrastructure issues continue to dog the project .
Both Nagasaki and Osaka must receive federal approval to finalize the acceptance of the projects for construction to get under way . It ’ s still uncertain how that approval process will work and whether opponents will be given a platform to present their cases against the projects . At the very earliest , opening of the IRs is slated for 2029 , more than a decade after the idea was first floated . In Brazil , it ’ s even more convoluted and tied up in politics . Earlier this year , the country ’ s Chamber of Deputies narrowly approved a gaming bill that included multiple casinos in a variety of locations . The measure would also approve various forms of gaming , including a minimum of 43 casinos , 292 jogo do bicho sale points and 6,012 bingo and video-bingo
Earlier this year , Brazil ’ s Chamber of Deputies narrowly approved a gaming bill that included multiple casinos in a variety of locations . But there was no vote in the Senate because of the presidential election that occurred in October .
The interest of more than a dozen Japanese cities was whittled down to just two : Nagasaki and Osaka . Both must receive federal approval to finalize the acceptance of the projects for construction to get under way .
halls , as well as an unknown number of racetracks and stadiums .
The number of casinos is based on population , whether in a tourist enclave or on a boat . As calculated , São Paulo will be the state that may have the largest number with three , followed by Minas Gerais , Rio de Janeiro , Amazonas and Pará , with two each within tourist areas . Riverboat casino numbers are based on the length of the river , with a maximum of 10 . That number could grow because in locations classified as natural or heritage tourist sites , a casino will be allowed regardless of the population density of the state , with a tourist casino no more than 100 kilometers from a casino in a leisure complex .
But there was no vote in the Senate because of the presidential election that occurred in October . President Jair Bolsonaro was defeated , and with him his promise to veto any legislation that legalizes gaming .
The new president , Luiz Inácio Lula da Silva , has promised to let such a bill stand — if passed .
But “ Lula ” is actually in his third non-consecutive term as president , and his previous administrations have not been friendly to gaming . In 2004 he closed the country ’ s bingo parlors . He also consolidated lotteries as the federal monopoly Caixa Econômica Federal ( CEF ). However , last year the Supreme Court ended the monopoly , opening the way for individual states to offer their own products .
Supporters of legalization want to bring it to a vote at the end of the National Congress session and before new House and Senate winners take their seats . Bolsonaro had previously indicated he would , before leaving office , allow the Ministry of Justice to regulate sports betting , which had been under the Ministry of the Economy . This rivalry between the two ministries was seen as a roadblock to regulation this year .
Bolsonaro ’ s defeat also calls into doubt whether these regulations will be implemented by the deadline . In that event , it would fall to the new administration to implement regulations .
Sports betting , however , had already been legalized in Brazil , and operators are waiting for the regulations to be promulgated .
So like Japan , it ’ s hurry up and wait in Brazil , as well . — Patrick Roberts
30 Global Gaming Business DECEMBER 2022