Legalized Gambling Hits Japan

Last month a member of Japan's ruling Liberal Democratic Party announced plans for the legalization of casino-style gambling in this populous Asian country. The announcement opens the door for the development of large-scale resort hotels equipped with Vegas-style casinos.

A survey conducted two years ago showed that more than half of the Japanese people supported a change of legislation which would allow many new types of gambling, including slot machines, blackjack, roulette and other traditional casino betting games. Only 22% opposed the legislative reversal, while nearly the same number were impartial. Clearly, this change could mean the new gambling Mecca of the orient may very well become Japan.

The Japanese are already reported to be some of the biggest gamblers in the world, and until now, they had to be content playing pachinko, which is a highly popular game which is somewhat of a cross between a slot machine and pinball. Prizes may be exchanged for small prizes and, in some cases, for money (although this is technically illegal) . The pachinko industry in Japan is colossal, and is said to dwarf the entire Las Vegas gambling industry by up to five times.

It is known that the Japanese like to gamble and casinos are not at all new to Japan. There are dozens of illegal yakuza-run casinos with members-only policies and a strict aversion to allowing entry to non-Japanese guests. These are routinely shut down by the police, only to open again in a different location. The new legislation would effectively eliminate the need for these underground casinos and allow the Japanese government to generate substantial sums of money, similar to the states of Singapore and Macau.

This type of casino-style gambling is also not without precedent in Japan society. It was legal under the Edo period of Japanese history, but it was said that many people's gambling excesses led them to lose their homes and possessions, and so gambling was outlawed in Japan for hundreds of years.

Until recently the only form of gambling allowed was horse racing, pachinko, and the state-run lottery. With the recent economic crisis and shortage of disposable income for the typical Japanese worker, these industries having been lagging behind and the announcement to permit gambling is seen as an effort to attract tourists to popular areas such as the Tokyo Bay, and the large port-cities of Osaka and Hiroshima.

To some people the introduction of legalized gambling would seem a natural step. Japan is already the biggest producer of slot machines in the world, and the ongoing decline of the Japanese economy sees both the people and the government seeking alternative sources of revenue for the government coffers. In a report published in October of 2003, the Tokyo government estimated legalized gambling and the opening of Las Vegas-style casinos could generate over $73o million in casino revenues, $177 million in tax revenue and create 13,800 jobs.

With that said, the stage is now set for the introduction of legalized casino gambling in Japan. One can only wait and see what type of effects this new age of gambling will usher in.

27-Mar-2006, 19:10

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