Tokyo has plans to put in a fresh bill to legalise casinos in the coming months. If the bill is successful, it could see casinos legalised as early as next year. In Japan currently, gambling is only allowed on a few select public lotteries and sports, and many residents have to travel outside the region to gamble. With Japan looking set to host the 2020 Olympics, the bill, if successful, could have a huge positive financial impact on the country. That’s especially the case for the city of Tokyo.
Casinos can be a great asset to the economic development of a city. Just take the glittering city of Las Vegas as an example. The tourism industry is booming and visitors don’t just spend their money at the casinos, they also stay in the local hotels and go to bars, restaurants and clubs, which spreads the economic wealth between local businesses. The same could happen for Tokyo. The arrival of a casino could potentially impact other services, so it could see a greater impact from tourisms.
A casino in Tokyo could help support other local hotels, restaurants, nightclubs and even taxis and travel facilities. More people are likely to be attracted to Tokyo if they can gamble as well and a greater number of people means more spending with the local businesses. There’s also the possibility that an increase in tourism will in turn increase the demand for tech products. Finally, many residents currently travel to other countries to gamble, so being able to visit a casino right on their own doorstep could mean less people leaving and therefore more money being recycled back into the economy.
Legalising gambling in Tokyo could help improve the economy, but it could have its drawbacks. The smaller local businesses that can’t keep up with demand or perhaps aren’t in the proximity of the casino could lose out as tourists spend their money in and around the casino area. It’s certain that policing and public service costs will increase alongside the developing economy as demand increases. Although most people do gamble responsibly, it’s no secret that some people can become addicted which can develop into problem and create pathological gamblers, which costs money to deal with. The cost of planning and building a casino can also be considerably larger than the obvious economic development benefits.
The introduction of legalised gambling into Tokyo could see a much needed positive development of the economy, but we’ll have to wait and see if the bill is accepted. If it is, it could lead to the introduction of online gaming. In the UK, for example, online gaming has been very successful and has seen companies such as Galacasino.com are thriving. Perhaps this is what Japan needs to give the economy a boost.