The final version of the national government’s Basic Policy on IRs, originally scheduled for release earlier this year, must be published by 26 July 2020 at the latest according to a new report by Japan-based consultancy Bay City Ventures.
However, a delay to the government’s IR implementation period in 2021 looks an increasingly likely scenario.
Coinciding with confirmation from Prime Minister Shinzo Abe on Monday that Japan was extending its state of emergency to 31 May, the report, authored by Bay City Ventures Managing Director Joji Kokuryo, provides some clarification on the various timelines impacting candidate operators and locations.
In particular it notes there is “no date more important than 30 July 2021.”
“The submission period for IR implementation plans to the Central Government by local governments and their IR partners runs from 4 January 2021 to 30 July 2021,” Kokuryo says. “This clear deadline affects every single timeline.
“If there are to be changes, it is much more likely that the July 2021 deadline is moved than the 26 July 2020 date, as the latter would involve revising the IR Implementation Law.
“The four candidate local governments [Osaka, Yokohama, Nagasaki and Wakayama] have been moving around their schedules for a variety of reasons, however the one constant has always been to have their IR business partner decided in Autumn 2020. This is a simple back calculation from the 30 July 2021 deadline, because there must be sufficient time to openly discuss and create a sound business plan for their application to the Central Government.
“Regardless of when the RFP procedure begins, local governments currently have a rough estimate of two to three months after receiving operator proposals to select their IR partner and at the very least seven months to finalize with their partner an IR business plan.
“This makes for a very tight schedule.”
While the Basic Policy is certain to be released by 26 July, Kokuryo noted that it will still only list out the main requirements for IRs and “not all the fine details” such as full tax requirements and gaming regulations.
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