Saturday, April 14, 2018

Operators to Face Heavy Fines for False Japan Casino Bid Information

Casino News Daily
Operators to Face Heavy Fines for False Japan Casino Bid Information

Operators that provide false information in their application for a casino license in Japan will face fines of up to JPY500 million (approximately $4.7 million), sources revealed on Friday.

Japan’s ruling Liberal Democratic Party and its coalition partner Komeito are currently crafting the Integrated Resort Implementation Bill, an important piece of legislation which includes the detail design of casino regulations and responsible gambling measures to be implemented once the nation’s first integrated resorts with a gaming floor open doors.

Sources said Friday that any fraudulent means used by casino operators to obtain a license would be penalized with heavy fines and prison time under the latest set of regulations discussed by the Japanese government.

Interested companies will be able to apply for a license for the operation of a casino within a larger integrated resort. The license will be valid for three years.

Companies and company executives will need to ensure that any piece of information provided by them during the application process is accurate. In addition, applicants will have to prove that no members of their management teams are in any way linked to criminal organizations and gangs.

If companies are discovered to have submitted false information, they will have their license revoked and will be fined up to JPY500 million. Involved members of the management team will each face individual fines of up to JPY5 million and up to five years in prison.

The introduction of the new set of fines comes as part of the Japanese government’s efforts to prevent criminal organizations from participating in the country’s nascent casino gaming industry. The new measures are also being rolled out shortly after lawmakers introduced a series of measures for the socially responsible provision of gambling services within the nation’s casino resorts.

Exclusive Interview with Hard Rock Japan CEO Ed Tracy on Japan IR/Casino Bid

Protecting Residents

The impact expanded gambling could have on Japan’s residents has been a primary concern during the casino gaming legalization process. The government has previously promised that it would look to adopt a legislation model that would ensure Japanese people are well protected and offered socially responsible casino gambling services.

Most recently, lawmakers added a series of responsible gambling measures to the IR Implementation Bill, including an entry fee for residents and a limit to the number of visits they could make to one casino or another across the country.

After months of discussions, the ruling party and its coalition partner agreed to a JPY6,000 (approx. $56) entry fee for residents of the country. In addition, they would be allowed no more than three casino visits per week or 10 per month. Casinos and casino staff found to have allowed Japanese people to visit gaming floors more often than permitted would face heavy penalties.

It has also become known over the past several weeks that IR operators will be required to pay a flat 30% tax on their gross gambling revenue. Gaming floors at integrated resorts will have to comprise no more than 3% of the properties’ total area.

Three casino licenses will be awarded initially by the government, or fewer than the five or six previously proposed by the Liberal Democratic Party. While it is still to be determined where exactly the casino resorts will be located, it is believed that Osaka is among the frontrunners. The city is also a candidate to host World Expo 2025.

The post Operators to Face Heavy Fines for False Japan Casino Bid Information appeared first on Casino News Daily.

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