The immediate fate of Japan’s burgeoning integrated resort industry will be decided on 22 October after Prime Minister Shinzo Abe called a snap election during an extraordinary Cabinet meeting on Thursday.
Staying true to local media reports earlier this week that a snap election was imminent, Prime Minister Abe wasted no time in dissolving the lower house during a morning meeting before setting out the campaign schedule, with campaigning to kick off on 10 October before the election itself 12 days later.
While the timing of the snap election is aimed at taking advantage of perceived disorganization within Japan’s main opposition parties, it also ends any chance the Abe government had of pushing through its major legislative reforms during the autumn session, including the much-hyped Integrated Resort Implementation Bill which was to set in place the rules for the establishment of casinos.
Hopes that Japan will finally give the green light to IRs now rest with the result of this election.
The President of the main opposition Democratic Party, Seiji Maehara, has already announced that the party will disband and merge with the new Party of Hope, led by Tokyo Governor Yuriko Koike.
Sanford C Bernstein analyst Vitaly Umansky said that confirmation of the snap election “means both gaming bills slated for discussion (the Implementation Bill and the gambling addiction bill) will have to wait at least until the 2018 Ordinary Diet Session, after the fiscal year budget is enacted.
“The delay may be helpful if it allows all sides to re-evaluate the most recently discussed proposals that would have a negative effect on market potential. However, the delay also may lead to a potential lack of passage as popular support for casinos remains relatively low and other legislative efforts may trump gaming legislation.”
