Japan Could Resume Casino Bidding Next Year Amid Growing Competition from Thailand

Japan may reopen its casino bidding process next year to fulfill the country’s 2018 gaming law, which authorized up to three integrated resort (IR) developments.

Under the leadership of then-Prime Minister Shinzo Abe, Japan’s National Diet passed legislation aimed at bringing large-scale casino resorts similar to those in Las Vegas and Macau to the country. Abe and his ruling Liberal Democratic Party (LDP) championed the initiative as a means to boost tourism.

However, seven years after the law’s enactment, only one casino license has been awarded, and construction is just now progressing in earnest. The slow-moving regulatory process for establishing rules to oversee Japan’s forthcoming gaming industry, coupled with the impact of the global pandemic on casino operators’ financial stability, as well as surging labor and construction costs, led many potential bidders to abandon their proposals.

MGM Resorts International was one of just two companies that remained in the running when Japan’s Casino Regulatory Commission finally began reviewing applications in 2023. MGM’s bid for Osaka was ultimately approved, while a competing proposal from Casinos Austria for Nagasaki was rejected.

GGRAsia, an online gaming news outlet focused on the Asian market, was the first to report that Japan might launch a second round of casino bidding next year. However, no official confirmation has been issued by the Japanese government.

A source speaking with GGRAsia suggested that uncertainty remains over whether companies that previously showed interest in Japan’s casino market but withdrew their bids in 2020 would be willing to reconsider investing in the country. Those firms include Las Vegas Sands, Melco Resorts, Wynn Resorts, Galaxy Entertainment, Genting Group, and Hard Rock International.

The potential revival of casino bidding in Japan may also be influenced by Thailand’s progress in legalizing gambling. A bill to permit integrated resorts in Bangkok, Chon Buri, Chiang Mai, and Phuket is expected to pass this year, drawing significant interest from major casino operators. Companies such as Sands, Genting, Melco, MGM, and Wynn have already expressed enthusiasm for entering the Thai market.

“There are only a few quality bidders that have the [financial] strength to participate in more than one,” an industry executive told GGRAsia. “Based on the terms as we know today, the Thai license will have priority.”

Meanwhile, gambling in Japan remains strictly regulated, with legal betting currently limited to parimutuel wagering on horse racing, motorsports, and the lottery. Despite these restrictions, a recent report suggests that millions of Japanese residents are gambling illegally online.

According to Japan’s National Police Agency, approximately 3.4 million people in the country engaged in online gambling last year, with the majority using unregulated offshore casino websites. The agency’s study found that around 40% of online gamblers were unaware that their activity was illegal.

The report estimated that ¥1.24 trillion (US$8.4 billion) was wagered online in 2024. Additionally, three-quarters of online gamblers surveyed said they initially joined free-to-play social casino websites or apps before transitioning to real-money gambling.

As Japan prepares for the introduction of legal casinos, measures are being put in place to address potential social risks. The government plans to impose a ¥6,000 (US$40) entry fee for residents and limit the number of times they can visit casinos each month.

By fLEXI tEAM