Space limit and high tax ‘may dent Japan IRs’

According to Morgan Stanley, Japanese integrated resorts may not be as profitable as expected.

The restrictions on casino floor space and high taxes may restrict returns, the analyst said. “Two of the key regulations - casino being only three per cent of total ground floor area and a 30 per cent revenue tax - may mean lower returns than many expected,” they wrote.

However, they also said that they “expect the first Japan casino to open by 2025 and the market size could peg at a range of US$11bn and U$20bn gaming revenue.”