Japan's Casino Regulatory Commission (カジノ管理委員会) published draft screening criteria for casino business licenses and related dispositions on 18 May 2022 and opened a public comment procedure from 19 May to 17 June 2022, a period of 30 days1. The draft sets out the standards the Commission will apply under Article 5, Paragraph 1 of the Administrative Procedure Act when processing casino business licenses and related dispositions under the Act on Development of Specified Integrated Resort Districts1.
Comments are to be submitted through the government's central e-Gov portal, and submissions are accepted in Japanese only1. The Commission has not set a date for publication or entry into force of the final criteria, listing both as undecided1.
The draft restates the licensing standards already set in Article 41 of the IR Act and adds detail on how each will be assessed1. For the social credit requirements, the Commission lists five factors to be weighed together: ties to organized crime groups, improper records or activity on legal compliance, improper records or activity in social life, improper records or activity on financial condition, and improper social or economic relationships with others1. The same five factors apply to the applicant, its officers, holders of voting rights at or above the major shareholder threshold and their officers, and the holders of facility land rights for the IR district1.
On the financial test, the draft requires an applicant to hold net assets large enough to keep operating the IR if risks materialize and casino revenue falls below projections, to have raised funds through stable means, and to hold sufficient liquid assets1. On facilities, the number of casino facilities in the district must not exceed one, judged on structural and functional unity, and the floor area used exclusively for casino operations must stay within the limit set by cabinet order; the method for calculating the 3 percent area restriction set by the IR enforcement order is already fixed in the Commission's rules1.
The draft also covers the business method statement, the casino facility terms and conditions, and the dependency prevention rules. Information to customers must be provided in multiple foreign languages including English1. Records must be kept for three years from the date of creation, and reports for three years from the date of the report1. The dependency prevention rules must be reviewed at least once a year and amended as needed1. Self-exclusion arrangements must run for a period of at least one year, in line with the wishes of the person requesting them, and must state that the arrangement can be ended before the period expires after one year has passed if the person wishes1. Advertising and solicitation content must be screened in advance by a reviewer or department independent of the advertising department1. Renewal of a casino business license under Article 43, Paragraph 2 applies the same screening criteria, excluding items (4) and (7)1.
What it means for players
The draft concerns who may hold a casino license in Japan, not the rules players face at the table, and no casino has opened in Japan. The criteria are the standards the Commission will use to judge applicants, so they shape which operators could eventually run an integrated resort in the country. The draft does touch on player-facing matters: the business method statement must set maximum and minimum stakes and odds, and maximum stakes must be set at levels that avoid excessively stimulating gambling appetite1. Casino facility terms must cover identity checks, fees, and the handling of casino-related prizes and chips1. The dependency prevention rules must include self-exclusion of at least one year at the entrant's request1. Japan's licensing framework and how to verify a license are covered in Gambling Regulators and Licenses in Asia and How to Check if a Casino, Betting Site or Lottery Is Licensed.
What happens next
The comment window runs from 19 May to 17 June 20221. The Commission has not announced when the final criteria will be published or take effect1.
