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, Nov 16, 2017

Japan needs to adopt problem gambling measures that are both scientifically proven and evidence-based, said a panel at the Macao Gaming Show on Thursday.

JapanThursday, Nov 16, 2017

Caesars Entertainment has become the first IR operator to publish concept images for a regional Japanese IR—in this case the Tomakomai site on the northern island of Hokkaido.

JapanWednesday, Nov 15, 2017

With its relatively well-developed in-country infrastructure compared to most other international IR operators, MGM Resorts is accelerating its engagement with Japan’s domestic business community in a series of presentations and other events.

JapanTuesday, Nov 14, 2017

Nagasaki Prefectural Government Planning & Development section chief Matsuyama Satoshi says the government is planning to conduct its Request for Information (RFI) process in December.

JapanTuesday, Nov 14, 2017

Hard Rock International unfurled its banner in the Japan IR race with a major concert by Grammy award winning alternative rock band Muse and a press conference.

JapanSunday, Nov 12, 2017

Hajime Satomi, president of Sega Sammy Holdings, told a meeting last Monday that his company aimed for a “main position” in a Japan IR consortium. He added that they would produce an “IR Grand Design” before the end of this year.

JapanThursday, Nov 09, 2017

Yoshifumi Kato, CEO and COO of Keihan Holdings, said on Tuesday that it was “his greatest mission” to connect Yumeshima with Kyoto by railway.