Western Japan prefecture pulls out of bid to host casino resort

April 21, 2022 Japan Emerging Markets

The assembly of a western Japan prefecture on Wednesday voted down a bid by its government to host a casino resort, leaving now only two other candidate sites and dealing a further blow to the country’s plan to stimulate the economy through the gambling industry.

The rejection by the Wakayama prefectural assembly is the latest sign of lost momentum in the central government’s push to construct so-called integrated resorts comprising a large hotel, conference rooms and gambling areas.

The project had already been shaky due to a graft scandal involving one of the key politicians, COVID-19 pandemic-induced procedural delays and withdrawals of foreign operators since Japan legalized casinos in 2018 as part of efforts to boost tourism and regional economies.

Under Japan’s law, up to three casino resorts are allowed. With Wakayama out of the race, only Nagasaki Prefecture, the city of Osaka and Osaka Prefecture — backed by their assemblies — are expected to submit formal applications to the central government for the right to host a casino resort in the 2020s.

Yokohama, near Tokyo and the second-largest city in Japan by population, withdrew its bid last September due to concerns about gambling addiction and the deterioration of public safety.