Tokyo Illegal Gaming Operation Sees 8 Arrested

Earlier this week, it was reported that the Tokyo police had arrested several people for running an illegal gambling operation in a building located in the Kabukicho entertainment district. Of the 8 people that were taken into custody, 44-year-old Hiroshi Hitomi was the head of the operation and has confessed his crimes.

The Metropolitan police suspect that Hitomi’s operation is part of a bigger picture and that the revenue from illegal gambling funds certain gangs. These are all speculations; however, the police have evidence that Hitomi has been running the illegal casino since 2005 and since then has produced over 48 billion yen.

Not only did Hitomi allegedly run an underground illegal casino with a variety of casino games, but consumers could also gamble online. He supplied services 24 hours a day, seven days a week, and it is estimated that 70 to 80 regular players visited the premises each day.

Gambling is outlawed in Japan, with the exception of government-run gambling such as horse racing. At the moment, the only place where casino games can be played is in Japan’s online casinos. In order to fight Japan’s long-standing problem of illegal gambling, the government is considering the construction of Integrated Resorts. These resorts would offer a safe and controlled gambling atmosphere, as well as a variety of hotels, entertainment, and gaming alternatives. Integrated Resorts could lessen the appeal of illegal gambling while also generating additional income for the government by providing a legitimate alternative.

2018 Approval of Integrated Resorts

In July 2018, Japanese lawmakers passed a bill that legalized brick-and-mortar casinos in three locations within the country: Osaka, Wakayama, and Nagasaki. These casinos were to be part of “integrated resorts”, which encompassed hotels, shopping centers, conference rooms, and more. Prime Minister Shinzo Abe was a staunch supporter of the bill, hoping it would help boost the tourism industry and economy beyond the Tokyo area. This bill put Japan on the map in Asia as a gambling destination, joining the ranks of Macau, Hong Kong, and Singapore in offering lavish casino resorts.

Opposing Opinions

While many were pleased with the decision and the prospect of new job opportunities, others expressed their displeasure. Yukio Edano, a member of Japan’s Constitutional Democratic Party, stated that all of those job vacancies would be based on individuals losing money gaming and that a healthy economy could not be managed with casinos open.

Recently, the Governor of Osaka stated that when the integrated resort is created, because of the geography and the number of tourists, the resort will be able to function even without Japanese guests. In Osaka, however, there have been requests for referendums, contrary to the governor’s convictions. More than 200,000 signatures have been collected, indicating that citizens desire a public vote on the construction of an integrated resort in their city.

Safeguards

While there have been concerns, in the bill, there were several safeguards set. For example, to prevent addiction, Japanese players would have to pay an entry fee of $53 or 6000 yen and could visit the casino only 3 times a week or 10 times per month. On the other hand, more money would come in through the foreign tourists, with them having no visiting restrictions and no entry fee.

The Daiwa Institute of Research said that the three locations that were picked where those integrated resorts would be built could generate an initial revenue of $9 billion, plus $2 billion annually.

Fast Forward to Today

Close to six years have passed, and there have been no major improvements or big steps made by the government to make a final decision on the locations of the first two integrated resorts in Osaka and Nagasaki. The Ministry of Land, Infrastructure, Transport, and Tourism is still hesitant, even though it was said that a decision would be made by the end of 2022.

MGM Resorts International and ORIX Corp, a consortium interested in the Osaka proposal, still haven’t received the green light. The same goes for Casinos Austria International, which is awaiting approval for the Nagasaki proposal. Several other companies were interested in the project, however, with years and years of waiting and no information coming out, they have pulled out.

Future Steps

Increased occurrences of unlawful gambling, similar to the one in Tokyo, have enraged the public. Some feel that by integrating such complexes, crime rates will decrease because there will be no need for clandestine gaming sites like the one Hitomi ran. Others, on the other hand, fear that this will merely serve as fuel to a larger fire, luring more individuals into gaming.

For the time being, businesses and residents in the three locations, as well as the rest of Japan, can only wait for the Ministry of Land, Infrastructure, Transport, and Tourism to make a final decision.