• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Japan casino GGR tax to be fixed at 30pct: reports

Apr 03, 2018 Newsdesk Japan, Latest News, Top of the deck  


Japan casino GGR tax to be fixed at 30pct: reports

Japan’s governing parties have agreed to a fixed tax rate of 30 percent on any casino gross gaming revenue (GGR) generated by that country’s proposed gaming resorts. The national government will need to confirm the policy.

The parties also reached consensus on a JPY6,000 (US$56) entry fee for Japanese citizens and residents wishing to enter such venues. The accords closed the gap on the final two of 11 policy issues debated by the parties over several weeks.

The latest consensus could assist the senior coalition partner, the Liberal Democratic Party (LDP), with its aim of introducing the Integrated Resorts (IR) Implementation Bill by May, with the target of passing it before the end of the current parliamentary session on June 20.

The news of the deals being brokered emerged following a Tuesday meeting between a steering group from the LDP and its junior coalition partner Komeito.

The government had suggested GGR tax should either be fixed at 30 percent or operate on a sliding scale in the range of 30 percent to 50 percent of GGR. The LDP thought such a tax should be fixed, but lower than 30 percent of GGR. Komeito had not nominated a percentage, but initially agreed with the principle of a sliding scale.

According to accounts of the discussion emerging from Tuesday’s meeting, it was decided that any sliding scale for GGR tax that went higher than 30 percent would significantly constrain the competitiveness of the casino industry and affect the benefits it could offer Japan. Such benefits are said to be likely to include an increase in inbound tourism.

Macau’s effective tax rate on casino GGR is 39 percent. Some industry insiders have mentioned the possibility of changes to it in connection with the city’s casino concession renewal process; and in order to ensure Macau’s casino sector remains competitive in Asia in the wake of casino proliferation in the region. In January, Alex Bumazhny, senior director at Fitch Ratings Inc, noted in a market briefing that Macau’s gaming tax rate was already “very high” compared to other jurisdictions in Asia. Any increase from the current rate would put Macau at a greater “competitive disadvantage,” he said at the time.

Japanese brokerage Nomura stated in an August report that a Japanese casino industry with “two major integrated resorts” could eventually generate gross gaming revenue of US$7 billion per year. A 30 percent tax levied on such aggregate GGR would result in a US$2.1-billion windfall for the public purse. The detail of how such tax money would be divided within Japan is still to be confirmed.

Regarding the casino entry fee, the Buddhist-influenced Komeito had previously called for a JPY8,000 – equivalent to Singapore’s SGD100 (US$76) casino entry fee for locals for 24-hour access – while the LDP had broadly supported a national government proposal that it should be JPY2,000. The compromise of JPY6,000 was said to reflect Singapore’s higher gross domestic product per capita relative to more populous Japan.

(Updated at 8.50am, April 4)


  • tweet
Related articles
  • Yokohama seeks US$4mln budget for IR promotion
    Yokohama seeks US$4mln budget for IR...

    Sep 18, 2019  

  • Japan’s pro-IR ruling bloc wins upper house election
    Japan’s pro-IR ruling bloc wins...

    Jul 22, 2019  

More news
  • Suncity Manila casino not a threat: Travellers EVP
    Suncity Manila casino not a threat:...

    Dec 09, 2019  

  • David Kennedy leaving Scientific Games’ board: firm
    David Kennedy leaving Scientific...

    Dec 09, 2019  


Latest News

Suncity Manila casino not a threat: Travellers EVP

Suncity Manila casino not a threat: Travellers EVP

Dec 09, 2019  

Macau junket brand Suncity’s move toward being a casino operator in the Manila market rather than just a supplier of VIP players should not be a threat to the incumbent operators in a...
Read More
David Kennedy leaving Scientific Games’ board: firm

David Kennedy leaving Scientific Games’ board: firm

Dec 09, 2019  

Interviews

  • Suncity Manila casino not a threat: Travellers EVP
    Suncity Manila casino not a threat: Travellers EVP

    Dec 09, 2019  

    Macau junket brand Suncity’s move toward being a casino...
  • Nagasaki fully backs Sasebo IR location: vice governor
    Nagasaki fully backs Sasebo IR location: vice governor

    Nov 06, 2019  

    A senior official of Japan’s Nagasaki prefecture has...
  • NagaCorp open to new development opportunities: chairman
    NagaCorp open to new development opportunities: chairman

    Jul 15, 2019  

    Hong Kong-listed casino operator and developer NagaCorp Ltd...
  • Casino logistics provider TKHS aims for global footprint
    Casino logistics provider TKHS aims for global footprint

    Jul 12, 2019  

    Asia-based casino logistics provider TKHS Group has plans...
  • Nagasaki official hopes for casino RFC phase by autumn
    Nagasaki official hopes for casino RFC phase by autumn

    Jul 04, 2019  

    Japan’s Nagasaki prefecture and Sasebo city aspire to...

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”We received … positive feedback from partners, visitors and exhibitors, encouraging our consideration for the next edition”

Josephine Lee

Chief operating officer of Reed Exhibitions Greater China, organiser of the G2E Asia @ the Philippines



Most Popular

  • Macau’s Taipa to Cotai light rail to open on Dec 10Macau’s Taipa to Cotai light rail to open on Dec 10 December 6, 2019
  • Melco poised for face check gantries at casino entry pointsMelco poised for face check gantries at casino entry points December 5, 2019
  • Galaxy Ent Boracay project might have chance: PagcorGalaxy Ent Boracay project might have chance: Pagcor December 4, 2019
  • LRWC drops plan for Boracay tie-up with Galaxy Ent: reportsLRWC drops plan for Boracay tie-up with Galaxy Ent: reports December 9, 2019
  • Okura hotel at RW Manila likely end 1Q2020 launch: firmOkura hotel at RW Manila likely end 1Q2020 launch: firm December 6, 2019
Copyright 2014-2019 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us