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

JapanFriday, Sep 22, 2017

In July a new organization called the Resourceful Center of Problem Gambling (RCPG) opened in Tokyo with the intention of strengthening the nation’s infrastructure to deal with this social scourge.

JapanThursday, Sep 21, 2017

Malta-based Catena Media announced yesterday that they had acquired a Japanese affiliate at a purchase price of approximately US$5.5 million.

JapanWednesday, Sep 20, 2017

Genting Singapore on Wednesday announced the establishment of a new branch office in Tokyo, Japan.

JapanTuesday, Sep 19, 2017

Japanese gaming supplier Universal Entertainment Corporation has denied a recent report suggesting that Kazuo Okada has been reinstalled as a director of Okada Holdings Ltd, its parent company.

JapanTuesday, Sep 19, 2017

The prospects for a Yokohama bid to locate an IR at the city’s Yamashita Pier took a heavy blow last week when the Yokohama Harbor Transport Association declared its opposition to a casino.

JapanThursday, Sep 14, 2017

As the city of Tokoname, Aichi Prefecture, takes its first steps toward a possible bid to locate an IR on Chubu Airport Island, the strongly anti-casino Japan Communist Party has begun mobilizing its local forces in opposition.

JapanThursday, Sep 14, 2017

Executives of the ruling Liberal Democratic Party and its coalition partner Komeito have agreed that the next Diet session will prioritize passage of a gambling anti-addiction bill before moving on to the IR Implementation Bill.