Inside Asian Gaming

19 18 “by using the revenue generated from the casinos that form part of the complex, and undertaking integrated operations with other facilities, casino entertainment can provide visitors high quality services such as shows, restaurants and accommodation at low prices. The provision of low cost services at a casino entertainment complex is of great appeal for visitors, and this is why casinos are key facilities, extremely useful in boosting the entertainment industry as a whole.” An estimate from the Japan Casino Acad- emy suggests that up to ¥120bn in tax reve- nue would be generated per year if six public casinos were to open in Odaiba. Economic ripple effects are hard to mea- sure but include direct beneficiaries such as the casinos, casino suppliers and employees and less direct benefits such as greater gov- ernment revenue and employment created in the local areas. Petrol stations and conve- nience stores in surrounding areas will also prosper. The indirect benefits could be huge – tourism represented 10.6% of 2005 global GDP with 3.8% direct and 6.8% indirect. In terms of employment, the tourism industry directly employs 2.8% of total global em- ployment but 8.3% if we include indirect em- ployment. Purpose of legislation The objectives of the legislation shall be: • To realise a globally competitive tourism sector by increasing the numbers of overseas tourists and promoting domestic tourist at- tractions that encourage visitors to spend time there and stay overnight; • To provide casinos as a new form of entertainment for the Japanese public and visiting tourists, in order to contribute to the growth of entertainment-related industries, the generation of employment and regional development and revitalisation; and • To use the revenue obtained to con- tribute to financial resources of the regions and the country as a whole (casinos as a form of entertainment will be referred to by the terms “games” and“gaming”). Further, when establishing the system, consideration shall be given to the issues of minimising the potential negative impact of gaming on society, eliminating negative influences on young people, preventing improprieties and wrongdoing, eradicating similar underground activity, ensuring safety and order in public places, and providing a safe and sound gaming environment for the Japanese public as well as tourists. Other interesting elements of the pro- posed framework include: • Casinos shall be designed as multi-func- tional tourism centres and not just gaming entertainment facilities. • Other similar activities such as internet gaming shall be prohibited. • Casinos will be phased in; increasing over time as the effects are evaluated. • Preliminary operation will be restricted to 2-3 locations, with priority given to re- gions with high policy needs whereby ca- sino establishment would give rise to ben- eficial promotional effects from a national and international perspective. However, we believe it is possible for there to be multiple casinos operating in any one location. We therefore, believe that a total of 7-10 casinos could be operating in Japan across 3-4 loca- tions eventually. • The Government shall retain exclusive rights regarding the licensing of casinos. In order to guarantee that operation will be performed safely, soundly and fairly, the gov- ernment shall establish unified rules and a framework concerning the details of opera- tion, regulate all facets of operation, as well as supervise and monitor operations. A new government body shall be set up under the competent Minister to perform the above- mentioned tasks. • Entities able to receive licenses to op- erate casinos shall be local government au- thorities or associations of local government authorities sharing a particular administra- tive function. • A local government authority, which is the legal casino licensee, may select a des- ignated private contractor based on public process to perform the planning, develop- ment, funds procurement, construction or maintenance and administration of a casino (gaming) facility, and by means of contrac- tual agreement, such contractor may be en- trusted with the practical administration of a casino (gaming) facility. The selection of a contactor responsible for administration shall be carried out by the local government authority by means of a competitive process, publicly seeking proposals. • Issues of revenue and expenses, risks and benefits are shared between the local government authority and private contrac- tor responsible for administration, and shall in principle be left to the local government authority and private contractor to decide through consultation and negotiation. • However, it is appropriate that the con- tractor responsible for administration bears the risks associated with game outcomes and casino related investments and loans, and it is important that the risks accompa- nying operation and financial risks should not impact on local government authorities. Further, operators are under no obligation to themselves own the facilities and assets accompanying casino operation, and the nature of ownership may be arranged ap- propriately between the local government authority operators and contractors respon- sible for administration. • After determining its total earnings (before deduction of expenditure) obtained from customers though games (this can be referred to as the gross gaming revenue and equates to the sales amount), the operator shall pay a levy to the government body, be- ing a fixed ratio of its total earnings calculat- ed as a graduated rate. • Levies received by the government body as described above shall be spent on activities furthering the legislative objectives, such as promoting international and domes- tic tourism, and contributing to the financial resources of the regions and nation, and uses shall be limited by the legislative objectives. • Local government authorities may vol- untarily enact bylaws to implement mea- sures restricting demand that go further than national rules (in this case, measures re- stricting demand may be based on the need to suppress demand among domestic users, and may include limiting business hours, re- stricting the days and hours facilities can be used by customers other than overseas tour- ists, imposing set entrance fees and so on, as well as setting own minimum and maximum bets and overall measures to suppress de- Direct Indirect Total Global tourism industry GDP 2005 12 10 8 6 4 2 0 (%) (%) Global tourism employment 12 10 8 6 4 2 0 Direct Indirect Total The future Marina Bay Sands in Singapore Genting’s upcoming resort in Sentosa, Singapore