Inside Asian Gaming

SEPTEMBER 2018 INSIDE ASIAN GAMING 33 KEY ASPECTS OF THE IR IMPLEMENTATION BILL The IR Implementation Bill includes several key aspects that will govern Japanese IRs, which are currently targeted to open in the second half of 2025 at the earliest. Throughout the debate, it has been clear that the Japanese Diet is relying on the Singapore model as a framework for regulation, while taking a Japanese view on how best to implement their own regulations. Below are some of the key aspects of the bill as it relates to taxation, scope of the facility and entry: A tax rate of 30%on gross gaming revenue, one of the higher tax rates in most leading jurisdictions. Tax revenues will be split There will likely be at least 20 different operators that will submit bids and … there may be just as many host locations submitting bids, but likely less than 10 will prove to be strong sites for consideration in this first round. evenly between the central government and the local municipality/prefecture, depending on which local government selected their operator group. The casino gaming area will be limited to 3%of the total facility. As the casino gaming floor is the engine that supports other non- gaming amenities within an IR and allows operators to develop facilities with iconic design, this limitation could certainly impact the bids received by certain host markets. It is yet to be determined how that number will be calculated. There will be a casino levy or tax of ¥6,000 (US$56), which is higher as a percentage of GDP than the levy imposed in Singapore of SG$100 (US$72). Additionally, the Japanese entry levy, as well as the Singapore levy, is only applicable to local market patrons, thus allowing foreigners access to the gaming area free of the tax. Like the gaming tax, casino levy revenues will be divided in the same manner between the central and local government. Visitation restrictions will be put into place that limit the amount of times that local market patrons can visit a casino within a given time period. Specifically, the proposed restrictions would prohibit local patrons from visiting a casino more than three times a week, with a maximum of 10 visits per month. COLUMNISTS The National Diet House of Japan