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Japan's Journey to Legalizing Land Casinos Amidst Opposition

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Japan has greenlit its first casino resort in Osaka, set to open in 2029. Previously banned, casinos were legalized in 2018 to stimulate job creation and tourism, albeit amid public worries over crime and gambling addiction.

The 49ha complex, funded by a $13.5bn initial investment from MGM and Orix Group, will feature a hotel, conference center, mall, and museum. Projected to attract 20 million visitors yearly, it could bring 1tn yen in annual economic benefits.

The project faced delays due to Covid-19 and a corruption scandal. Other plans include a casino in Nagasaki's Dutch-themed park, Huis Ten Bosch.

The journey to the legalization of land casinos was long and certainly not easy. In Japan, gambling was generally illegal except for specific forms such as horse racing and boat racing. Japan is originally known as a country with very good public safety, and many citizens were against creating new casinos due to concerns about the impact of gambling addiction, such as worsening security.

Before the construction site was decided to be Osaka, several candidate sites were proposed, but Yokohama (the city next to Tokyo), which was the best candidate, had to give up the construction due to citizens' concerns about the impact on public safety.

In fact, in Japan, indeed criminal organizations such as gangs and Yakuza are illegally running casinos, and crimes associated with them are occurring. It is often the case that famous people are targeted as customers, and it is unavoidable that citizens have a bad image of casinos when they are arrested.

However, Japan had to construct casinos, even if it had to push back against the opposition of the people, and needed to attract foreign tourists. Japan is experiencing a rapid population decline, and it might become impossible to maintain the economic power that has been maintained so far. Therefore, by focusing on the tourism industry, it is trying to bring economic effects by attracting people from abroad.

Land casinos have been legalized in Japan, but according to a site called onlinecasinojapan.com, which compares online casinos in Japan, online casinos are still legally in a gray area. Gambling is generally illegal, but there is currently no law in Japan that penalizes playing at online casinos that are legally operated overseas.

As a result, many Japanese gamblers have moved to online casinos in the wake of the Corona pandemic. However, given the current situation where Japanese funds are flowing to overseas online casino companies, there is a high possibility that the Japanese government may take some action regarding online casinos.





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