TOKYO (Reuters) - Japanese firms are likely to pursue stakes in the country’s first casino resorts, after parliament on Friday enacted a law smoothing the way for large-scale gambling - a business expected to generate billions of dollars in revenue.
FILE PHOTO: A logo of Japan casino school is seen as a dealer puts cards on a mock black jack casino table during a photo opportunity at an international tourism promotion symposium in Tokyo, Japan September 28, 2013. REUTERS/Yuya Shino/File Photo
Japan legalized casinos in 2016 but a further law was needed to lay out specific regulations before these resorts - complexes hosting casinos, retail and conference space - could be set up.
The new law, which allows three licenses to be given out initially, calls for a 30 percent tax on gambling revenue and caps casino space at 3 percent of total resort size, provides the clarity that was missing.
It will embolden local companies that have been wary of a sector that the Japanese public associates with addiction and crime, setting the stage for a race for stakes, casino executives and lobbyists told Reuters.
The prize for Japan Inc is clear: these resorts will earn up to $25 billion in revenue, analysts say, representing a rare chance of growth for domestic firms that have been bruised by decades of deflation and weak demand.
Various Japanese firms spanning sectors from finance, real state to construction and tourism will target equity stakes in consortia with casino operators, the sources added.
While no Japanese company has announced any plans yet, firms regularly cited by lobbyists as seeking participation include Obayashi Corp, Mitsubishi Estate Co and Sumitomo Mitsui Financial Group Inc (SMFG).
A spokesman for Obayashi, which in May set up a team to explore
