Meetings & Information




*****************************
****************************************************
MUST READ:
GET THE FACTS!






Showing posts with label Japan. Show all posts
Showing posts with label Japan. Show all posts

Thursday, June 5, 2014

Follow The Trend And Short Las Vegas Sands And Wynn Over The Next Months



Follow The Trend And Short Las Vegas Sands And Wynn Over The Next Months

Monday, May 26, 2014

Ball and chain: gambling’s darker side




Wrecking balls: An estimated 1 in 10 people in Japan play pachinko, according to a 2012 report compiled by the Japan Productivity Center. | “CR PACHINKO AKB48” BY DICK JOHNSON, USED UNDER CC BY 2.0 / PERSPECTIVE ALTERED AND LOGO REMOVED FROM ORIGINAL

Ball and chain: gambling’s darker side


With lawmakers debating whether to legalize gambling in time for the 2020 Olympics, we look at the other side of the coin — addiction


by Simon Scott
Special To The Japan Times

Unable to overcome his compulsion to play pachinko, long-time Tokyo expat Wayne Smith created an unconventional strategy to limit his ability to gamble away his hard-earned money — keep all his cash in rolls of ¥500 coins.

“¥500 coins cannot be used in pachinko (machines) and cannot be changed at the weekend, as banks are closed, or after 6 p.m. weekdays,” he says. “Also, coins will survive a fire at home and are more cumbersome for burglars to steal.”

Smith, who spoke under a pseudonym due to concerns that public knowledge of his addiction could have negative ramifications on his job, says he used to go to the bank every weekday after pay day and withdraw the maximum limit of a ¥25,000 roll (50 x ¥500) until he had emptied his bank account. That way, he was never short of spending money, but wouldn’t blow it all on the machines.

“At one time I had almost ¥2 million in rolls of ¥500 coins,” he says. “It is a good chunk of metal to have.”

Smith’s strategy of turning all his cash into metal may appear to be somewhat eccentric, but it illustrates the ends to which problem gamblers will go. “It’s not ideal but short of cutting off my right hand, it was the best method I found for controlling my gambling addiction,” he says.

Smith eventually quit pachinko altogether for six months using this method, although he acknowledges he has relapsed on numerous occasions and still plays the machines today, although not as much as he used to.

At root of his addiction to pachinko, he says, is a longing for the rush of positive feeling that follows a big win.

“It is addiction and it is euphoria,” he says. “Addiction is euphoria, really.

Etsuko Sato, a 43-year-old resident of Tokyo who also spoke under a pseudonym because of job recrimination concerns, says she was initially attracted to pachinko by the relatively small amounts she could gamble with upfront. Most machines in parlors in Tokyo, she says, start from as little as ¥1,000.

“The excitement sucks you in,” she says, “but the longer you keep winning, the more boring it becomes. For me, it’s less about the high as it is about the transition of emotions you get in the process — from simply playing to winning.”

Smith says pachinko machines are set up so that players constantly think they’re on the edge of a sizeable pay out that, most of the time, doesn’t eventuate.

“Pachinko is all about cliffhangers,” he says. “You go in there thinking ‘I am going to win’ and the initial ¥5,000 is all adrenalin — and you come so close. Then after two hours of losing, you become just cold. There is a bad taste in your mouth and the euphoria is gone.”

Smith says a sense of unreality typically consumes him while playing the game regarding the large volume of money being spent.

“You go in there and you put 20 grand or 30 grand into the machine and it is like just credits. It feels like nothing,” he says. “And then you go into a store and you see a broccoli for ¥250 and you think, ‘That is expensive, I’m not buying that.’ And you have just blown 400 bucks on pachinko.”

Despite spending a considerable amount of money on pachinko, Smith’s addiction has never caused him serious financial difficulty, something he puts down to the fact he has a high income. Yet he still regrets spending the money in such a wasteful fashion. “If I could get all the money back I have spent at pachinko, it would be well over ¥10 million,” he says. “I could have bought a house by now.”

For some compulsive gamblers, however, the habit is much more costly than mere lost opportunity.

Naoko Takiguchi, a professor of sociology at Otani University, says she has seen first-hand the damage that can be done to someone’s life.

In addition to her academic work, Takiguchi also runs rehabilitation and education programs for problem gamblers and their families in the Kansai area, and works with first-time offenders in domestic prisons who have gambling problems.

“It leads to debt, poverty, crime, suicide, loss of employment, parents fighting about money, arrest and the shame that it brings to the family, divorce, and children developing gambling and other addiction(-related) problems such as eating disorders,” Takiguchi says.

“It is not just the gambler who suffers, but the whole family, especially the children,” Takiguchi says, adding that others affected by gambling typically include “friends and colleagues, and even society at large.”

Although the problem of gambling addiction in Japan is “very serious,” Takiguchi says a lack of government acknowledgement makes it difficult to gauge its true depth. “We do not have a national prevalence rate (for gambling addiction),” she says. “This shows the government does not care about gambling problems.”

Yet data for the size and scale of the pachinko industry itself is available, and Takiguchi believes this suggests a massive population of unrecognized problem gamblers potentially exists in Japan.

“Japan has by far the largest number of gaming machines in the world,” Takiguchi wrote in a 2011 report titled “Electronic Journal of Contemporary Japanese Studies” that she co-authored with Richard Rosenthal. “In 2006, there were 4.9 million pachinko and pachi-slot machines in the country, which equates to one machine for every 26 people. By way of comparison, the United States has the largest number of machines outside of Japan, a total of 740,475 gaming machines in 2006, or one machine for every 404 people.”

Yet it is not just the number of pachinko machines in the country that is astounding — the money the industry generates is even more mind-boggling.

Pachinko is estimated to be worth around ¥20 trillion annually — about half the revenue generated each year by the top three Japanese automakers.

Pachinko also accounts for a significant chunk of the country’s leisure market as a whole. While expenditure on sports-related activities accounted for just 6 percent of the leisure industry in 2012, pachinko accounted for almost 30 percent, according to a report compiled by the Japan Productivity Center.

Remarkably, despite the gargantuan size of the pachinko industry, gambling is still technically illegal in Japan.

The 2007 Penal Code states that a person who gambles habitually shall be punished by a fine of up to ¥500,000 or imprisonment with labor for up to three years.

Yet this same law also provides an exception, stating that the prohibition doesn’t apply “when the bet of a thing is made only for momentary amusement.”

It is through the manipulation of this legal loophole in domestic gambling law that the pachinko industry has been able to prosper — officially, it is defined as gaming, not gambling.

In order to maintain this false front, no cash winnings are paid out inside the parlor itself. Instead winners receive “special prizes” — usually plastic tokens of an agreed monetary value containing a sliver of gold — and these are exchanged for cash at a window adjacent to the parlor.

By locating the booth where the prize money is handed over off the premises, the pretence that pachinko is a game, and not real gambling, is maintained.

Takiguchi says pachinko’s legal status as gaming rather than gambling means the industry remains largely unregulated, and also allows the government to turn a blind eye to the issue of addiction.

“Although 61 percent of electronic gaming machines in the world are in Japan, our government has done almost nothing to respond to gambling-related problems,” Takiguchi says. “What can we expect? Virtually no responsible gambling policies are in place, nor any training system to train gambling-addiction treatment experts. No ethical code has ever been established.”

Although pachinko is very much a Japanese invention, the inspiration for it came from the Corinth Game, a children’s game based on bagatelle that was developed in the United States and imported to Japan in 1924.

The Corinth Game, or korinto gēmu, which is also believed to be the inspiration for pinball, became hugely popular. It was a common sight on the counters of candy stores at the time and children would win candy or pieces of fruit if they managed to attain a high score. Soon adults began to take interest and pledge money for prizes such as a cigarettes or soap.

The Corinth Game, or pachi-pachi as it came to be known due to the clicking sounds the balls made, then morphed with the British wall game Circle of Pleasure. It incorporated many of the game’s features — in particular, the vertical rather than horizontal alignment (a space-saving bonus in crowded Japan) — and pachinko was born.

Nagoya is credited as being the home of pachinko, with the first license for a “gachinko hall” issued there in 1930.

Yet the nascent life of the game was to be short-lived and all pachinko parlors were closed by the government in 1938 in a bid to aid the “war effort.”

It wasn’t until 1946 that pachinko had its second birth, once again in Nagoya.

According to Sung-Yoon Lee, professor of Korean studies at the Fletcher School at Tufts University and a pachinko historian, the game’s genesis in Nagoya may also explain its often-talked-about Korean connection. Lee says Nagoya was heavily bombed during World War II because it was a major industrial city and the largest manufacturer of combat aircraft in the country.

“At the end of the war, the damaged factories had a surplus of ball bearings, which were turned into the small metal balls for pachinko machines,” Lee says. “Hundreds of thousands of Koreans were taken from the Korean Peninsula in the 1930s and ’40s by force to work in factories and mines in Japan. The end of the war created natural conditions for a large Korean population in a major industrial city to go into this industry.”

Lee says the 600,000 Koreans who remained in Japan after World War II — 1.5 million returned home to the Korean Peninsula — were stripped of their Japanese citizenship. He says this, accompanied by a climate of prejudice, meant job opportunities for them were scarce.

“The Koreans in Japan faced discrimination and had few avenues for accruing wealth,” Lee says.

“Although the (beginnings of the) pachinko industry had been around since the 1920s, it offered an unconventional and potentially lucrative means to a livelihood for Koreans,” he says. “Its links to organized crime, shady cash transactions and the social stigma of shame associated with gambling made it a very unattractive industry to mainstream Japanese.”

According to Lee, an estimated 80 percent of pachinko parlors in Japan are currently owned by ethnic Koreans, 10 percent by Taiwanese and the rest by Japanese. Taiwan is the only country other than Japan where pachinko is popular, a fact often attributed to the legacy of Japanese colonialism.

The most well-known and powerful of these Koreans is Han Chang-woo, who illegally entered Japan in 1947 and is the owner of the pachinko management company Maruhan, which controls an estimated 10 percent of the industry.

Han has a current personal net worth of ¥276 billion and is ranked by Forbes as the 12th richest person in Japan.

A persistent and popular myth in Japan is that much of the money generated from the pachinko industry is funneled to North Korea. Lee says it is impossible to know exactly how much money coming directly from the pachinko industry has made its way into Pyongyang coffers, but in the 1990s several hundreds of millions of U.S. dollars purportedly flowed into North Korea each year from ethnic Korean businessmen in Japan, and it is likely some of this came from pachinko.

“However, the Japanese government has cracked down on such remittances since the spotlight fell on the abduction issue in the early 2000s,” Lee says.

U.S. citizen Mark Jones, who asked that his real name not be used due to fears about his existing employer knowing about his past gambling problems, says he was already a problem gambler long before he even came to Japan, let alone set foot in a pachinko parlor.

He says he gambled heavily at casinos, mainly playing blackjack, in the 1980s in Las Vegas and Atlantic City but managed to stop with the help of the Twelve Step Program in 1987.

Fifty-year-old Jones, who now lives in Nagoya, first came to Japan in 1993 to work as an English teacher in the Kansai area. By this point in his life, Jones thought he had left his gambling addiction long behind him and says he first went into a pachinko parlor just to use the toilet.

“Eventually I got curious and I stuck ¥500 into a machine,” he says. “Within a year … I was blowing half of my salary. It was gambling and I got caught.”

Jones says he would finish teaching his last class and then head straight to a pachinko parlor to play for the last hour or so it was open. “On other days I didn’t have classes until the late afternoon, so I would play all morning and on the weekends I would play all day,” he says.

This pattern continued for about 18 months until Jones decided to do something about his problem.

However, he says there were few options available to seek treatment. “I already knew I had a problem,” he says. “I had been in the Twelve Step Program in the States but there were no meetings, no way to get help at that time in Osaka in 1993. That is why I helped set up meetings with some Japanese people in 1994.”

Jones called the Yokohama branch of Gamblers Anonymous — one of the few in existence in the country at the time — and a member there put him in contact with a couple of local people who wanted to form a support group.

Together, they started the first Gamblers Anonymous branch in the Kansai region. Only three regular members attended the early meetings, although the numbers increased after Mainichi Shimbun published an article about the group in 1996. Despite a couple of relapses, Jones says he hasn’t gambled for more than four years. However, he still goes to meetings once a week because it “maintains the abstinence.”

“Any program someone goes to, they don’t just go and clean up and stop,” he says. “The problem with this kind of addiction is that it is progressive — that particular aspect of it never changes. It is not a curable thing. It is something you have all the time.”

Jones says he no longer regularly feels the urge to gamble but is always on guard in case something sets it off. Just walking past a pachinko parlor, he says, can sometimes be difficult. “I just try and ignore them [the urges] and I try and do other things with my life,” he says. “I have hobbies and other interests now, whereas back then, gambling was all I wanted to do.”


http://www.japantimes.co.jp/life/2014/05/24/lifestyle/ball-chain-gamblings-darker-side/#.U4NAXKzD-P8

Sunday, May 18, 2014

Casino gambling bad bet in Japan



Casino gambling bad bet in Japan


 
Japan’s government is considering legalizing gambling in Japan, one of the world’s last untapped markets for gambling. Two billionaire casino operators are pushing to open casino resorts and turn Japan into the third-largest center for gambling after the United States and Macau. Gambling will bring problems.

The examples of the U.S. and the United Kingdom should be sufficient to show that legalized gambling exacerbates problems. The evidence gathered from those two countries over the last several decades of removing prohibitions on gambling shows huge increases in gambling addiction, crime, personal debt and mental health issues, while doing almost nothing for the economy.

Most tax revenue from gambling taxes will be offset by expenditures for treating addictions, fighting crime and helping gamblers in debt. Studies in the U.S. have shown that the rate of compulsive gambling for people living close to a casino is twice the average. They have shown that pathological gamblers number in the millions, and are increasing.

Even worse, according to the U.S.-based Gamblers Anonymous, a group that helps gambling addicts, the average person seeking help will already have lost all his or her money and have accumulated debts ranging from $35,000 to $92,000 before seeking treatment.

Since Japan already has problems with personal debt, and allows very high loan rates, legalized gambling will lead to ever-larger debt for the people most prone to it. Japan already has problems with authorized gambling that includes pachinko as well as horse, boat and bicycle racing. The inconsistent policies about gambling should be resolved by reducing gambling problems, not increasing them.

The government will need to prepare treatment centers for ever more problem gamblers. Studies of gamblers in the U.S. and U.K. found that problem gambling leads to a range of mental health issues. In one survey of chronic gamblers, 22 percent reported panic attacks, 72 percent reported an episode of major depression and 52 percent reported alcohol abuse. Suicidal thoughts are common. These are already health issues in Japan.

There are potential political problems to consider as well. One of the billionaire casino moguls, Sheldon Adelson, has funded a long string of right-wing causes, most prominently donating millions to Republican candidate Mitt Romney’s failed presidential bid.

He was reported to have donated $150 million to extreme conservative causes in 2012. If Adelson’s casinos were allowed to operate in Japan, he might seek to influence Japanese politics by spending vast sums of money here, too.

Casinos may advertise romantic hopes of hitting it rich, but in fact the gambling industry has set the odds in its favor based on extensive research and carefully controlled gaming systems. Casino companies have found the best ways to keep players losing with ever more enticing ways to play.

Letting the gambling industry to operate in Japan is a terrible bet. Japan will lose.



http://www.japantimes.co.jp/opinion/2014/05/17/editorials/casino-gambling-bad-bet-japan/#.U3iggnDD_ug

Thursday, May 9, 2013

Genting Singapore misses profit estimate



Genting Singapore misses profit estimate as gamblers get lucky




Sunday, January 20, 2013

Japanese Pachinko Addiction Fuels Multi-Billion Dollar Industry


Japanese Pachinko Addiction Fuels Multi-Billion Dollar Industry

http://stitcher.com/s/player.php?AAIAAWksW

Gambling is illegal in Japan, much to the consternation of American casino companies.

Sunday, February 19, 2012

Japan's Sad Gambling Addiction in Wake of Disaster

Pachinko's popularity in disaster zone raises gambling addiction concerns

In the areas hit hardest by the Great East Japan Earthquake disaster, it's said pachinko halls were amongst the first businesses to get back on their feet and are enjoying a healthy business. Pachinko is a type of pinball where the player guides small steel balls to certain goals to get even more balls. The balls are traded for prizes which are in turn traded for cash outside the halls. To discover what is on the minds of disaster survivors who visit these halls, I visited one with 10,000 yen of my own money.

The suburbs of Ishinomaki, Miyagi Prefecture, were blanketed with snow. Homes with their first floors gutted by the tsunami and shuttered stores could be seen here and there. I visited a large pachinko hall that had been reopened with new furnishings a half-year after being flooded by the tsunami. Even though it was a weekday, there was a line of around 40 people waiting for opening time.

"I've come even on a snowy day, so you'll give out winnings, right?" said an elderly woman wearing a woolen cap to a young hall employee. They seemed to know each other. The low temperature for the day was -5 degrees Celsius.

"Thank you for coming," came an announcement at 9:00 a.m., and the hall doors parted. While I wondered where to sit, everyone else took a spot in front of a machine. I eventually sat in the front row next to an elderly gentleman.

I started the game. When a ball fell in the center hole, numbers on a screen would spin like on a slot machine. If the three numbers that came up matched it was a jackpot. I heard that when this happens, around 8,000 yen's worth of balls come out of the machine all at once. I'd also heard that jackpots sometimes came one after another. However, with 1,000 yen I was only able to play for a few minutes. Thinking, "Next will be it," I continued playing until I'd lost all 10,000 yen in only 30 minutes.

Coming back to my senses and looking around the hall, I saw that around 80 percent of the over 300 seats were filled. About one in seven or eight people had won a jackpot, and they had stacks of boxes filled with balls. After noon, the hall's seats were almost filled. I looked at the display over the machine of the man next to me. He'd been playing the whole time, but the display read, "Number of jackpots: 0." It had been three hours since the hall opened. Based on the 30 minutes it took my machine to devour 10,000 yen, the man may have lost 60,000 yen. A few minutes of the game is leisure, but more than that is entering the world of high-stakes gambling.

I talked to a few customers leaving the hall. When I asked, "Did you win?" they all gave vague responses, and they all had gloomy expressions. A middle-aged woman who had come to the hall said, "People who lost won't say anything because a lot of them keep their visits here secret from their families.

"The people who line up at the start of business come every day, even on borrowed money," she added.

"Did you get a jackpot?" I asked the man next to me as he got up to leave at around 1 p.m. He looked at me with an uncomfortable expression when I said I'd been sitting next to him since opening.

"Today was bad," he said. "But I came out ahead the day I had 11 jackpots in a row." He couldn't, though, remember exactly when that was or how much he'd won.

When I asked why he still came every day even when he lost badly, he said, "Before the earthquake I didn't do it much. I lost my son to the tsunami, my house was washed away, and now I live with my wife in temporary housing nearby. I don't know anyone there, and I have nothing to do, so it's something to pass the time." He said he has played pachinko since he was young.

A person with ties to the pachinko business in Sendai told me, "Pachinko halls are particularly numerous in Ishinomaki and other coastal areas where there aren't many recreational facilities. I think that New Year's business in Miyagi Prefecture at the top hall of each of the chains was much higher than during the same period the year before the earthquake. There are halls still suffering negative effects from the earthquake, but this year the business as a whole will probably start making a profit again."

Tsukasa Endo, 49, who works for a non-profit organization supporting Ishinomaki, says, "There are many people who visit pachinko halls to escape the harsh realities of post-earthquake life and get hooked. The earthquake probably also serves as something of an excuse. Some lonely disaster refugees are getting addicted to gambling or alcohol, and it's tragic."

According to Hokkaido Mental Health Welfare Center head Hitoshi Tanabe, who has spent many years treating addiction, rises in gambling addiction after disasters are common.

"When disaster-affected lifestyles are prolonged, people with gambling or alcohol addictions or tendencies towards those addictions have an increased risk of relapses or worsened symptoms. The jobs, schools, or family connections that would normally be the focus of their energies are gone. Bad temporary living situations and anxiety about the future continue for a long time, leading to an increased desire to drink or gamble. The risk is even higher when disasters cut patients in support groups off from their group therapy," says Tanabe.

Gambling addiction often sets in when a person in an emotionally vulnerable state, like depression or very low self -esteem, gets a thrill from winning at gambling. It becomes habitual to the point that the person can no longer be happy without gambling, and will even spend money they need for the most basic living expense to support their habit. If the person vows to stop, they may continue while hiding it from their family.

"The first thing this person needs to do is go to a hospital or mental health center that treats addiction for diagnosis," Tanabe says. "Treatment starts with the patient and their family accepting there is an addiction. The patient must attend a support group regularly and change their lifestyle while getting expert advice. A person will not recover by just telling themselves that all they need to do is not gamble."

For the disaster areas, he adds, "In addition to passing out addiction checklists and fliers telling people where they can get help, cooperation between judicial scriveners at debt consultation centers -- often visited by gamblers who have hit rock bottom or their families -- and addiction specialists is also effective." A group of judicial scriveners in Miyagi Prefecture has already invited gambling addiction specialists to open study courses.

However, another volunteer mental health worker helping disaster victims says, "When you say 'disaster survivors,' that includes people in a variety of financial conditions, from those who have received life insurance or donation payments to those who have lost their jobs and not received any compensation. Even if they are playing pachinko, if it's within boundaries it's just leisure. For a volunteer, it's hard to find out how disaster survivors are using their money."

At 7:00 p.m. I visited the same pachinko hall again, and there were people waiting for seats. A girl who seemed to be about junior high school age was searching for someone. She approached a woman who had five boxes of winnings stacked next to her. After an exchange of words, the woman handed 1,000 yen to the girl, who for a split second looked sad.

I caught up with the girl after she left the hall and asked if the woman was her mother, and she nodded. I asked about the 1,000 yen.

"She said, 'Go eat next door.' I'm going to the restaurant now," the girl replied. I asked her whether her mother came to play pachinko every day. "She leaves the house saying, 'I'm going to my part-time job,' but..." the girl said, trailing off.

Gambling addiction is surely not a problem that can be solved by blaming anyone, I thought, standing near the blue-white neon lights of the hall. (By Joji Uramatsu, Evening Edition Department)

Tuesday, January 31, 2012

Wynn asks judge to oppose top investor's suit

Wynn asks judge to oppose top investor's suit
By Farah Master

(Reuters) - Las Vegas tycoon Steve Wynn's Wynn Resorts has urged a U.S. court to reject legal claims made by its largest shareholder, adding fire to an escalating public spat that could impact the future control of the $15 billion casino giant.

In a 117-page filing with the Clark County District Court in Nevada, Wynn stated that Kazuo Okada, who holds a 20 percent stake in the firm, was "utilizing innuendo, hyperbole, half-truths and sweeping generalizations" in his legal petition that was filed on January 11.

Okada, Wynn's longtime business partner who was formerly known for his close relationship with the U.S. billionaire, sued the company for denying him access to crucial financial information and has objected to an "inappropriate" $135 million company donation to the University of Macau.

The Japanese businessman owns more than double the stake of Wynn Resorts stock than Wynn himself has. Okada filed his suit through Aruze USA Inc -- a unit of his company Universal Entertainment Corp, an arcade-game manufacturer and developer of a multi-billion-dollar casino in the Philippines.

Responding in Monday's filing in Nevada, Wynn stated that Nevada law did not give Okada the right to inspection and his requests were "nothing more than stockholder inspection requests, on behalf of Aruze."

"Nevada law does not afford Okada or any other individual director the right to do an end run around the express statutory limitations on stockholder inspection rights, or to play detective, while unnecessarily distracting and burdening Wynn's management with the endless task of satisfying his unfounded and unarticulated 'concerns'," the filing said.

Wynn's donation to the University of Macau in 2011 was approved by the boards of Wynn Resorts and Wynn Macau on April 18 last year, with Okada the only member of the 12-person board who objected to the payment, according to the latest filing.

OKADA FIRES BACK

In an email sent to Reuters on Tuesday, Aruze USA said that as a member of the board of Wynn Resorts, Okada had the right to inspect the corporate documents he deemed necessary to carry out his duties as a director.

"The response of Wynn Resorts' management, while full of colorful rhetoric, cannot explain this away. We look forward to presenting our position to the Court," Aruze said.

Okada, a Hong Kong resident who made his fortune in Japanese pachinkos, has also proposed four potential candidates for election ahead of Wynn's 2012 shareholder meeting.

If these are endorsed, the Japanese businessman would be pushing out high level executives including Wynn's Chief Operating Officer Marc Schorr and Linda Chen, President of Wynn International Marketing, whose terms expire this year.

Wynn, creator of the volcano-roaring Mirage and lavish Bellagio in Las Vegas, upset shareholders more than 12 years ago with overzealous spending on items including his $200 million art collection, eating into profitability of his firm at the time, Mirage Resorts.

Weighed by poor company earnings, Wynn agreed to sell out to MGM Grand, now known as MGM Resorts International in 2000, before rebounding on the gaming stage with Wynn Resorts.

ASIA EXPANSION THREATENED?

Wynn, like Las Vegas and Macau rival Sheldon Adelson of Las Vegas Sands, has expressed interest in cementing his presence in emerging Asian gaming markets such as Japan and South Korea should legalization allow in the future.

Okada, who has been investing in Wynn Resorts since 2000, is seen as key to the company's potential casino development in Japan due to his vast business links and contacts.

The earthquake and tsunami-ravaged country has been discussing legalizing casinos to help contribute to international tourism. Japan is a market that analysts say would be highly lucrative and could generate revenues of over $40 billion a year.

"The negative relationship dynamics that have developed seem serious enough to where it may put the company's future in Japan in jeopardy," said Jonathan Galaviz, managing director and chief economist at research firm Galaviz & Company.

"My guess is that this negative relationship issue with Wynn Resorts will probably press Okada to develop a relationship with another U.S. casino gaming company. Certainly Las Vegas Sands has been very aggressive in their desire to do something in Japan," said Galaviz, adding that he expected many large corporates to be reaching out to Okada's organization.

Revenues from Wynn's property in Macau, the world's largest gambling destination on the tip of China's southern coast, accounts for 70 percent of Wynn Resort's total revenues. Wynn currently does not have a presence in the fast-growing Singapore market, where LVS has developed one of the world's most profitable casinos.

(Editing by Brian Rhoads and Muralikumar Anantharaman)

Sunday, January 22, 2012

Keep casinos out of Japan

Keep casinos out of Japan

A group of lawmakers is now considering a bill that would allow resorts to combine their hotel, shop and restaurant complexes with gambling. If the bill passes, casinos could become a Japanese industry worth several trillion yen.

With the government facing an expensive reconstruction bill from the March 11 disasters, the Japanese government is even more vulnerable to the intensive lobbying efforts of the international gambling industry.

Casino revenue may seem like an easy source of revenue, but the problems associated with gambling taking root as a social habit and as an established industry are extensive. It is unlikely that gambling will solve the serious long-term challenges of the Japanese economy. Many of the companies pushing for legalizing casinos are based in Macau, Singapore or Las Vegas.

If the gamblers are Japanese and the companies foreign, that will mean gambling revenues can easily become a net outflow of cash from Japan, a possibility made even more likely by fluctuations in foreign exchange rates. There is little assurance the cash flow will be in the right direction.

Casino operators argue that the industry will create jobs, but gambling is just as susceptible to the economy as any other industry. Those jobs do not necessarily result in a larger stimulation of the entire economy, nor do they prime the pump of consumer spending or contribute substantially to other industries. The amount of money spent on other leisure, consumption or recreation activities may also suffer a downturn when personal budgets are spent on gambling.

Gambling can become a serious addiction, bringing with it a host of social problems. Last fall, the former chairman of Daio Paper Corp., Mr. Mototaka Ikawa, was arrested after he siphoned funds from his subsidiaries to cover ¥10 billion in gambling losses.

It should be remembered that no matter how the finances are structured or regulated, profits for the casino always come from losses by individuals.

Supporters may argue that Japan already allows gambling on pachinko, lotteries and various forms of racing. However, adding large-scale casinos inside hotel complexes will be a considerable expansion and encouragement of gambling.

As with tobacco, long a source of government tax revenue, the long-term problems, such as addiction, potential corruption and little economic benefit, weigh much more heavily than the short-term income of tax revenue. Casino gambling will not solve any of Japan's long-term economic problems, which demand more reasoned and productive solutions.


Monday, February 7, 2011

Sumo corruption crisis

Sumo spring tournament cancelled in corruption crisis

TOKYO — Japan's sumo authority has cancelled its spring tournament over a match-fixing scandal, in the first such cancellation in over half a century as the ancient and tainted sport reaches a new low.

The board of the Japan Sumo Association held an emergency session Sunday and decided to scrap the March tournament, major media said, as it tries to investigate the extent of the corruption after confessions from three fighters.

In the latest scandal, at least three active sumo fighters have for the first time admitted fixing bouts, with 11 more wrestlers under suspicion.

Match-rigging claims have long stalked sumo, which has its roots in Japan's native Shinto religion and dates back some 1,500 years -- but this is the first time wrestlers still in the sumo world have confessed.

The sumo authority had previously taken legal action against journalists and others who reported cases of bout fixing.

The scandal came to light last week after a newspaper revealed a police investigation into an illegal gambling scheme on baseball games, run by gangsters with bets placed by sumo wrestlers.

For that investigation, police confiscated mobile phones from sumo fighters and discovered messages detailing arrangements for bout-fixing, which is not a crime but prompted fury among fans of the sport.

The sport's cherished image for probity has collapsed following revelations of drug use, extortion linked to underworld gangs and the 2007 death of a trainee who died after being bullied and subjected to violent initiation rites.