Is it possible to build a casino resort in Japan?
It’s a testament to Japan’s sense of moderation that the government allows only 3 towns to host a large casino-centred entertainment and leisure resort. On Monday, the new mayor of Yokohama, Takeharu Yamanaka took office and started demolishing plans for a proposed integrated resort(IR) near Yamashita Pier.
A Yokohama residents group collected more than 200,000 signatures of citizens calling for the withdrawal of IR from the town, but later the submission was rejected in the LDP ruled parliament. Although the planned casino area is limited to 3% of the entire floor plan of the facility, the city of 3.7 million people seems protective about the neighbourhood of Yamashita Pier where many families and young people gather.
Meanwhile, the Deputy Mayor of Yokohama, Toshihide Hirahara allegedly attended lavish dinner parties with members of RXI group, developers of the Yomkohama IR project, on four separate occasions in 2016. Bunshun reported that the developers paid the altogether $5,500 bills for the dinners. It is known in Japanese as Settai (接待), ‘entertainment’ but is this just essentially a form of bribery?
Toshihide said in a statement:
“I paid the part of the bill like $180. I didn't know what kind of company they were until I got there, and I still don't remember. But I never received any money or favours from them”.
The deadline is looming. Local governments interested in hosting one of the resorts must present plans to the central government by the spring of 2022. Although the new mayor and the deputy mayor share agendas over the struggling financial situation, IR will potentially cause friction between them.
Yokohama is a bed town for workers in Tokyo. The main tax revenue of the city comes from residential tax and it has decreased due to the ageing population. Therefore, the city is seeking an alternative source of income.
The new mayor, Takeharu made a policy speech on his first day of enrolment, and he said the highest priority is to halt plans for the IR in Yokohama. Essentially, taking big companies to run business in the city and promoting the city to more families, is the answer for the struggling tax income.
At the end of the conference, he was asked whether he will open an investigation reagrding the deputy mayor’s ‘entertainment’ evenings with RXI.
“I will check the facts with Hirahara first. Have you asked him the question? If you have asked him the question, please tell me what he said. It’s my first day and we just met each other.”
The treatment of the deputy mayor’s alleged indiscretions will be critical to the new mayor’s term. It is obvious that Toshihide formed close ties with casino developers since 2016 and the evidence suggests some shady business. However, Takeharu is proving cautious in his sidestepping of these political landmines.