IR bill delay could be positive for pachinko

The outcome of Tokyo’s local elections on Sunday is likely negative for IRs, but could be a relief for Japan’s pachinko industry, says Union Gaming.

On Sunday, as part of an election for the prefecture-level parliament of Tokyo, the Liberal Democratic Party (LDP) lost nearly two-thirds of its seats in the 127-member assembly, from 60 to 23. The results are being seen as a rebuke to PM Abe and the LDP and their associated policies.

“With this in mind we believe the Tokyo defeat for the LDP, and by implication a weaker outlook for the LDP nationally, will make it incrementally tougher for PM Abe to push through his agenda, including the very contentious IR issue,” said Union Gaming.

The brokerage says the result of this could be that the IR bill does not come into fruition until after the election year in 2018 - or it becomes “watered down with cumbersome regulations.”

The delay could be a relief to the pachinko industry, which has experienced a decline due to increasingly tightening regulations.

“Over the years the NPA has continually stiffened regulations… and as the separate problem gaming bill has taken center stage, we believe this has put additional pressure on the NPA to… [make] pachinko even more restrictive.”

“In the now-more-likely event that the IR bill doesn't come to fruition this year (and possibly next year too) due to the LDP's political fortunes, we would view this as a positive for the pachinko industry as it could result in a regulatory reprieve,” said the analysts.

More news from this jurisdiction

JapanWednesday, Jul 19, 2017

The city council of Iwanuma, in Japan’s northern Miyagi Prefecture, envisions a bid for an IR as a measure to help the local area recover from the March 2011 tsunami that devastated Japan.

JapanTuesday, Jul 18, 2017

Grant Govertsen, an analyst for Union Gaming, has produced a second report this month highlighting gloomy scenarios for the future of IRs in Japan.

JapanMonday, Jul 17, 2017

The official-two week campaign period ahead of the July 30 mayoral election for Yokohama was launched on Sunday, with two of the three candidates opposing the hosting of an IR in the city.

JapanTuesday, Jul 11, 2017

The high-profile public debate on gambling addiction, which until now has been mainly associated with the forthcoming establishment of IRs, is set to hit Japan’s lucrative pachinko industry.

JapanMonday, Jul 10, 2017

The city council of Tokoname appealed on Friday to Aichi Governor Hideaki Omura, calling for an accelerated feasibility study for siting an IR within their municipality.

JapanThursday, Jul 06, 2017

The Hokkaido prefectural government has reportedly decided that only one IR licensing bid from the local region will be submitted to the national government.

JapanThursday, Jul 06, 2017

Las Vegas Sands and MGM Resorts are among the two operators most likely to receive the urban IR concessions in Osaka and Yokohama, notes Morningstar analysts.