Casinos are considered one of the most lucrative businesses to run. Gamblers may not agree with this as most of them have lost fortunes in these same casinos. However, there are the lucky few who win the jackpot, though this rarely happens.
It is no different in Japan. It was in this light that the Japan administration felt it was not making enough returns from these gambling businesses and especially when the money was won by a foreigner. Consequently, earlier in the month, Japan came up with a system whereby foreigners would pay a withholding tax on any winnings they made. This was in a move to ensure the government earned some of the money before it disappeared to foreign soil.
To ensure this law was adhered to, the government was to pass another law that was to require all casinos to register their chip sales, both at the casino cage and at the gaming table. This would make it easier for the casino to compare these registered figures with individual chips to know whether one has lost or won.
However, news reaching and share by the CalvinAyre.com hint that on Wednesday, the government postponed a discussion that was to be held on Thursday concerning Japan’s resorts. The discussion was to be on tax reforms that are to be implemented during 2020 fiscal. In the mind of most casino managers, the reason for this kind of postponing may not be as usual as they sound – could be there is some hidden game the authorities are devising.
The plan to tax foreigners was to be part of the postponed discussion. Japan’s ruling party Liberal Democratic Party (LDP) reports that it felt such laws might interfere with foreigner’s investment in casinos, consequently affecting profits and the economy at large. However, the party claims the plans have been shelved for a while and might be considered in the future.
It is important to note that this move by the Japanese government wasn’t totally uncalled for. Sometime back when the government lifted the ban on casinos around the country, international casino owners went heads on with each other in the hopes of securing at least three casinos. This was the maximum umber of casinos the government would license, as initially reported. It started out with a maximum investment of 10 billion dollars, but as things would have it, the situation has gotten hotter over time. Right now, one requires a minimum of 10 billion dollars for authorities to even consider licensing you. This is quite a lot of money, yet the government does not earn anything from these investments. It all goes back to foreign countries.
Such high investment, with uncertain returns, has however caused some investors to take a step back. One such case is that of Las Vegas Sands. Recently, its president Rob Goldstein said that it might not be wise for the company to make such a huge investment whose returns were not 100% assured.