A second member of Japan’s ruling Liberal Democratic Party (LDP) to become embroiled in an alleged bribery scandal has admitted to receiving cash and favors from a Shenzhen-based online gambling promoter called 500.com.
According to the Japan Times, lawmaker Takaki Shirasuka confessed to having received 1 million yen (74,000 patacas) from the Chinese gambling promoter said to be interested in joining Japan’s nascent casino market.
Shirasuka visited the headquarters of Chinese company 500.com Ltd. in Shenzhen and a casino in Macau in 2017, accompanied by then fellow LDP lawmaker Tsukasa Akimoto, 48, who was later indicted on bribery charges. 500.com is said to have also covered his gambling chips while in the Macau SAR.
Citing unnamed sources, the Japan Times said that prosecutors will not build a bribery case against Shirasuka “as the 45-year-old, who was a member of a cross-party group of lawmakers promoting casino resort projects, had no authority over the matter [of deciding which companies would be offered casino licenses].”
The lawmaker’s office said on Tuesday that Shirasuka had “cooperated sincerely with investigators and explained during his interviews with them that none of his actions constitute anything illegal.”
Japan’s parliament passed the controversial Integrated Resorts Implementation Bill into law two years ago, opening the door for casino investors to a lucrative market worth an estimated $25 billion annually. The government hopes that integrated resorts can attract more foreign tourists to invigorate the economy after the now-postponed 2020 Tokyo Olympics and Paralympics.
However, according to Bloomberg, the recent scandal involving the Shenzhen promoter has dealt a blow to the already unpopular plans to open the country to gambling.
The market has long drawn the interest of overseas casino investors, including, at one time, all six Macau concessionaires or their parent companies.
However, some of that initial enthusiasm is now wearing off. A growing number of casino executives say that the process in Japan has been more difficult compared with other markets that have built gaming industries.
In May, Las Vegas Sands dropped its pursuit of a license in Japan, citing the proposed 10-year concession term as one of the biggest stumbling blocks.
MGM Resorts International is the favorite to win a license in Osaka after Malaysian tourism giant Genting Bhd and Galaxy Entertainment Group Ltd. dropped out of the race for Japan’s second city. Genting and Galaxy have said they are still interested in a location elsewhere in Japan, as are Wynn Resorts and Melco Resorts & Entertainment.
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