Japan Press Weekly

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2013 December 11 - 17 [ECONOMY]

Pachinko machine vendor seeks to install casino in Miyazaki

The leading company in the pachinko machine industry is attempting to establish a casino in Japan’s southern prefecture of Miyazaki in Kyushu, arousing grave concerns among local residents.

Last year, Sega Sammy Holdings, the largest pachinko machine vender in Japan, bought out a large resort facility, “Seagaia”, in Miyazaki City. The seaside resort started operations in 1994 with the full supports of Miyazaki Prefecture and Miyazaki City. However, it went bankrupt in 2001 due to unexpectedly bad business performance.

Since around 2001, a call for inviting a casino to the prefecture has been raised as a measure to attract visitors. The acquisition of the facility by Sega Sammy fanned this call.

Sega Sammy has expressed great interest in opening a casino there just after the acquisition. It established and runs a casino in South Korea in a joint venture with a Korean company. In November, the prefectural government together with the city and local economic organizations established a study group on the feasibility of an integrated resort development centering on a casino.

A bill to lift a ban on casino gambling was submitted to the Diet on December 5. Miyazaki will be the first municipality to receive permission to operate a gambling casino if the bill is enacted.

The casino project in Miyazaki entirely depends on Sega Sammy for both funds and know-how to run a casino.

Kodama Kensaku, a kimono shop owner in Miyazaki City, pointed out that the pachinko machine company will siphon off all the profit earned from the casino and that local businesses will gain little or no benefit. “As a result, it will become a money-making venture just for Sega Sammy,” he said.

Iriya Takao, who teaches economics at Miyazaki University, said that Miyazaki Prefecture has repeatedly seen failures of large scale public investment projects. For the prefecture, which experienced the bankruptcy of Seagaia, the casino project is a bad investment, he stressed.

Past related article
> More local gov’ts want to invite casinos [October 6, 2013]