The Japan Tourism Agency has published a draft Cabinet order outlining plans to open a new application window for local governments interested in hosting integrated resorts, running from 6 May 2027 to 5 November 2027.

Under the 2018 Integrated Resorts Act, the government may approve up to three development projects. To date, only one project has been approved – the Osaka resort being developed by a joint venture between MGM Resorts International and Japan’s Orix Corporation. The project is estimated to cost ¥1.27 trillion (£6.4bn) and is scheduled to open in 2030.

During the first application round in 2023, bids from Nagasaki and Wakayama were rejected, while Yokohama withdrew its application citing social concerns. It is expected that these regions will reapply in the future. The island of Hokkaido has also expressed interest in exploring the economic potential of land-based gambling.

Each region must prepare an area development plan in cooperation with a private-sector operator. In the past, industry giants such as Caesars Entertainment, Wynn Resorts and Hard Rock International were linked to potential applications.

Momentum behind casino development in Japan increased in October following the election of Sanae Takaichi as the country’s Prime Minister. Just days after taking office, she urged the Minister of Tourism to renew efforts to promote integrated resorts as part of Japan’s broader economic growth strategy, which prompted the latest actions by the tourism agency.

Takaichi was one of the earliest proponents of legalising casinos in Japan. A bill she introduced in 2013 played a key role in shaping the integrated resort legislation currently in force.

At the same time, prospects for a shift in Japan’s stance on online gambling appear far less optimistic. The sector remains illegal, and no changes are expected in the near term. Takaichi has taken a largely negative position, calling for tighter regulation due to concerns over the social harms associated with iGaming.

Despite the ban, the Japanese government estimates that annual wagering on online platforms reaches ¥1.24 trillion (£6.2bn). Authorities are taking steps to curb the influence of the illegal market, including banning advertising by overseas online gambling operators.

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