Japan GGR levies to be lower than Macau

One of the major considerations for operators considering investment in prospective Japan IRs is the rate of levies on GGR.

While the central government policies have yet to be determined, there seems to be a consensus about the general range that they will fall within.

Tomakomai city in Hokkaido is a step or two ahead of the central government, calling for operators to turn in an initial investment survey by September.

For the purposes of providing a “detailed plan,” the Tomakomai officials instruct the operators that “the amount of casino levies is assumed to be 25 percent of GGR.”

They also offered the guideline that entry fee for domestic customers will be set at JPY5,000 (US$45).

The estimate provided by this month’s analysis from Morningstar is in a similar range, foreseeing 20 percent levies on GGR and an JPY8,000 yen (US$72) entry fee to casinos for Japan residents.

All estimates agree that Japanese levies on GGR will be considerably lower than Macau’s effective rate of 39 percent.

The true figures are likely to become known when the IR Implementation Bill is opened for public comment in the autumn, though presumably some later adjustments will still be possible.

More news from this jurisdiction

JapanThursday, Dec 14, 2017

On Tuesday afternoon, the Osaka city government published a recruitment announcement for a company that would be employed to offer advice on the process of establishing an IR at Yumeshima.

JapanWednesday, Dec 13, 2017

The Japan Gaming Congress held by Clarion Gaming has confirmed dates for the 2018 conference, held at the Conrad Tokyo from May 10 to 11.

JapanSunday, Dec 10, 2017

A second indication has emerged that Wakayama’s IR advocates are now moving away from their notion that casino entry might be limited to foreigners.

Japan, ElsewhereTuesday, Dec 05, 2017

Sega Sammy Creation has secured a license for the sale and distribution of gaming machines in Nevada, as of December 1.

JapanTuesday, Dec 05, 2017

Universal Entertainment Corporation has announced that it has entered into an agreement with Guangcai Group to establish a 50-50 joint venture corporation for the sales and maintenance of its casino-related devices in Southeast Asia.

JapanTuesday, Dec 05, 2017

Among the various international operators, Caesars Entertainment has been in engaging in the most robust dialogue with Japanese journalists and policymakers on the critical subject of problem gambling.

JapanTuesday, Dec 05, 2017

The Clairvest Group of Canada has become the first international operator to open an office in Nagasaki, anticipating the establishment of an IR at the Huis Ten Bosch theme park in Sasebo city.