Hello everyone! I’m diving into a topic today that has been simmering in Japan’s political and economic sphere for years: the development of Integrated Resorts (IRs), which famously include casinos. While the public debate often focuses on potential problems, the foundational policy driving this massive undertaking is deeply tied to one specific political figure: Yoshihide Suga (菅 義偉).
When I look at Japan’s push for high-end tourism and regional revitalization, it’s clear that Suga wasn’t just a supporter of the IR concept—he was its most persistent and powerful champion. Today, I want to unpack the “Suga Casino” policy: where it came from, why it matters for Japan’s economy, and what the future holds for this high-stakes venture.
The Visionary: Why Suga Championed the IR Policy
Yoshihide Suga, particularly during his tenure as Chief Cabinet Secretary under Shinzo Abe and later as Prime Minister, viewed the IR policy not as a gamble, but as a crucial pillar for structural economic reform. Unlike previous attempts to introduce casinos, the IR framework was designed to achieve something far broader than just generating gaming revenue.
The core motivation, as I understand it, focused on two major areas:
Economic Stimulus and Inbound Tourism: Japan has ambitious goals for attracting foreign visitors. However, to truly compete with destinations like Singapore and Macau, Japan needed world-class, multi-functional resorts capable of handling massive MICE (Meetings, Incentives, Conventions, and Exhibitions) events. Suga believed IRs were the key to keeping high-spending, long-stay tourists in Japan.
Regional Revitalization (地方創生): A major goal of the policy was to disperse the economic benefits beyond Tokyo and Osaka. By strategically selecting regional sites, the government hoped to inject billions of yen into local economies, creating diverse employment and upgrading infrastructure, often utilizing land that had seen declining industrial activity.
Suga’s role was instrumental. He consistently used his political capital to shepherd the complex legislation through the Diet, often neutralizing opposition both within his own party (LDP) and from the public by emphasizing strict regulatory measures designed to mitigate social risks.
What Exactly is an Integrated Resort (IR)?
Before we proceed, it’s vital to clarify that an IR is much more than a casino. The policy was carefully crafted to ensure that the gaming floor takes up only a small fraction of the total floor space, forcing operators to invest heavily in non-gaming amenities.
When I look at the legal definition, the key components of an IR are designed to create a destination, not just a gambling venue. These components typically include:
World-Class Convention Centers: Large facilities designed for international business meetings and major exhibitions (a primary focus for Japan).
Luxury Accommodation: Multiple high-end hotels catering to diverse international travelers.
Retail and Dining: Extensive shopping malls featuring both international luxury brands and Japanese local crafts, along with fine dining options.
Entertainment Venues: Theaters, concert halls, museums, and family-friendly attractions.
The Casino Floor: Strictly regulated gaming space, limited to a maximum of 3% of the total resort area.
The High-Stakes Timeline: From Concept to Reality
The legislative process for the IRs was arduous and dragged on for years, facing numerous political hurdles and public debates. The timeline illustrates just how central the regulatory framework was to the entire procedure.
Year Event/Legislation Significance
2016 IR Promotion Bill (IR Pro Bill) Legal groundwork established. This bill legalized the basic concept of IRs in Japan, contingent upon further detailed regulation.
2018 IR Implementation Act Detailed operational rules established. This crucial act outlined licensing procedures, government oversight bodies, restrictions (like entry fees for local residents), and addiction countermeasures.
2019 Candidate City Submissions Cities like Osaka, Yokohama (which later withdrew), Nagasaki, and Wakayama expressed official interest in hosting an IR.
2020-2022 COVID-19 Delays The initial selection timeline was significantly pushed back due to the global pandemic, impacting the ability of foreign operators to conduct due diligence.
2023 Osaka and Nagasaki Approved The central government formally approved the development plans for the first two IR locations.
The First Two Locations
The initial plan called for up to three sites, but the process has narrowed the focus to two confirmed locations:
Osaka (Yumeshima): Partnering with MGM Resorts International and Orix Corp. This site is strategically located on an artificial island that will also host the 2025 World Expo. It is projected to be the largest and most ambitious of the Japanese IRs.
Nagasaki (Huis Ten Bosch): Partnering with the Casinos Austria International group. This IR focuses heavily on regional distinctiveness, aiming to be smaller but highly integrated with Kyushu’s cultural tourism.
The Controversy: Addressing the Social Risks
It would be disingenuous to discuss the “Suga Casino” policy without addressing the significant controversies and anxieties surrounding it. Public opposition has been consistently high, often focusing on issues related to crime and addiction.
Suga and the government proactively attempted to address these fears through strict regulatory measures outlined in the 2018 Implementation Act.
Key Social Countermeasures:
Entry Fee: Japanese residents must pay a ¥6,000 (roughly $40) entry fee to the casino area, payable upon each visit. Foreign tourists enter free.
Visit Limits: Japanese residents are limited to three casino visits per week and ten per month.
Family/Self-Exclusion: Systems allow family members or individuals to request self-exclusion from the gambling areas.
Cashless Systems: Strict monitoring systems track spending and potential addictive behavior.
Regarding the necessity of balancing economic growth with social safety, the policy proponents often stress the cautionary approach taken by Japan.
“Integrated resorts are a cornerstone for future growth, but we must proceed with the utmost caution regarding public safety and addressing issues like gambling addiction. Japan’s regulations are among the strictest globally, reflecting our deep concern for our citizens’ well-being.” — (Statement reflecting the government’s stance during the policy debate)
Moreover, the process was unfortunately marred by corruption when former LDP lawmaker Tsukasa Akimoto, a key figure in promoting the policy, was arrested in 2019 on bribery charges related to the IR selection process. While Akimoto was convicted, the government stressed that this was an isolated criminal act, not a reflection of the policy itself, but it certainly eroded public trust.
Looking Ahead: The Economic Impact
The success of the IR policy hinges entirely on its projected economic returns, which are substantial. The current operating timelines suggest Osaka might open around 2030, with Nagasaki slightly later.
The projected economic benefits for Japan are staggering, driven primarily by tourism spending and capital investment:
Location Estimated Annual Revenue (J-Yen) Expected Annual Visitors (Millions) Primary Focus
Osaka ¥520 Billion (approx. $3.5B USD) 20 Million MICE, International Tourists, and regional integration with the Expo legacy.
Nagasaki ¥120 Billion (approx. $800M USD) 8 Million Cultural tourism, Kyushu access, and regional uniqueness.
These resorts are expected to generate tens of thousands of direct and indirect jobs, fulfilling Suga’s original vision of leveraging these facilities for broad-based economic revitalization.
Frequently Asked Questions (FAQ)
Q1: Will this lead to widespread gambling addiction in Japan?
A: The government is deploying some of the world’s most stringent countermeasures, including mandatory entry fees for locals, strict limits on visits, and comprehensive family exclusion systems, specifically to address potential addiction risks.
Q2: Why are Japanese residents charged an entry fee, but foreigners are not?
A: The ¥6,000 entry fee is a regulatory measure designed to discourage casual or excessive gambling among the local population, while keeping the resorts attractive and accessible to high-spending foreign tourists.
Q3: When will the first IR finally open?
A: Due to pandemic delays and the scale of construction, the Osaka IR is currently targeting an opening date sometime around 2030. Nagasaki’s timeline is similar or slightly later.
Q4: Are there plans for more IRs beyond Osaka and Nagasaki?
A: The IR Implementation Act allows for up to three sites initially. While a third site remains a possibility, the focus of the central government right now is entirely on ensuring the successful and timely completion of the approved Osaka and Nagasaki developments.
Conclusion
The push for Integrated Resorts represents a significant legacy of Yoshihide Suga’s time in power: a clear commitment to using ambitious policy tools to fundamentally reshape Japan’s economic landscape. While the path has been long and fraught with political challenges, the approval of the Osaka and Nagasaki sites marks the final transition from policy debate to physical construction.
The resulting IRs won’t just be casinos; they will be massive engines of MICE tourism and regional economic growth. It will be fascinating to watch as these resorts rise, testing whether Suga’s high-stakes bet on integrated tourism can pay off for Japan’s future.