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Japanese authorities raided the headquarters of a gaming arcade operator on Thursday as part of a bribery investigation centred on a governing party politician, local media reported, widening a scandal that could undermine government efforts to develop casinos.
The Tokyo-based firm was under investigation for possible ties to politician Tsukasa Akimoto, who was arrested on Wednesday on suspicion of accepting bribes when he oversaw the government's policy on casino development, broadcaster NHK said.
Following Akimoto's high-profile arrest, Japanese media reported that prosecutors have been expanding their investigation into whether he accepted cash and gifts from 500.com, an online gambling operator based in China interested in developing a casino in Japan.
Prosecutors have arrested three other people suspected of bribery and raided the offices of two other ruling Liberal Democratic Party politicians in connection with the case, media reported.
While Japan's top government spokesman insisted that Akimoto's arrest would not delay its plans to develop three casino resorts, the investigation will likely raise questions about the bidding process.
Analysts say Akimoto's arrest may add to the negative images that many Japanese people have of casinos, and also weigh on Abe, who is fighting allegations of using party funds to entertain supporters, lowering his public approval rating.
Tsukasa Akimoto, a ruling Liberal Democratic Party lawmaker who once oversaw issues related to integrated casino-resort projects, was arrested on Dec. 25 on suspicion of taking bribes from a Chinese company involved in online gambling.
Tokyo prosecutors suspect that Akimoto, 48, accepted about 3.7 million yen in bribes in return for providing favors to the company, 500.com, in its efforts to operate a casino business in Japan.
Prosecutors initially investigated Akimoto in connection with a possible violation of the Foreign Exchange and Foreign Trade Law by a Japanese man claiming to be an executive officer of 500.com.
Akimoto gave a lecture at the symposium along with the company's CEO. Prosecutors suspect that Akimoto accepted 3 million yen in cash from three company officials in Tokyo in late September 2017, sources said.
Three months later, in December 2017, Akimoto invited other Diet members to accompany him on a tour of IT companies in Shenzhen, where he visited the headquarters of 500.com, according to sources.
The sources said the CEO told Akimoto and the others that 500.com was interested in integrated resort projects in Japan, saying, "It will be a business opportunity if can operate casinos in Japan."
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Japan is an island nation located in the Pacific Ocean to the east of Russia, South Korea, and China. Colloquially referred to as the Land of the Rising Sun, it occupies a territory of 145,000 square miles and has around 126.5 million citizens, which makes it one of the world’s most densely populated countries. Casino executives who have long salivated over Japan as a potential $20 billion gaming market are beginning to question whether that jackpot is worth all the trouble. While the Integrated Resort Promotion Law will change the landscape of casino gambling in Japan, the laws regarding racing, football betting, and the lottery will remain intact. There are plenty of gambling opportunities for residents, but they are only legal through government-approved vendors. Japan: Gambling Laws and Regulations 2021. ICLG - Gambling Laws and Regulations - Japan covers common issues in gambling laws and regulations – including relevant authorities and legislation, application for a licence, licence restrictions, digital media, enforcement and liability – in 37 jurisdictions. The Bill aims at legalizing casino facilities on the territory of Japan, which are currently banned by the country's laws. The local legislation is often found confusing for non-Japanese visitors who do not see the logic for the country to have a giant “pachinko” industry, but not to legalize gambling. Japan is a country in East Asia with legal gambling. There are 23 cities with gambling facilities in Japan which have 25 legal gambling facilities available in total. The types of gambling available in Japan are: casinos, horseracing tracks. The largest gambling city in Japan is Funabashi with 2 gambling facilities. Japanese Prime Minister Shinzo Abe’s cabinet approved regulations for gambling resorts, the first of which could open in Osaka as soon as 2024 and provide a new source of tax revenue. Latest Casino and Gambling News, Casino proposals, Casino News, Gaming Industry News, Economy/Finance, Japan, Licenses, Mergers, Acquisitions & Partnerships French casino and hotel operator Groupe Lucien Barriere has reportedly changed its mind and decided not to pursue the chance to run one of Japan’s coming trio of integrated casino resorts. Japan legalized casino gambling and cleared the way for three casino resorts, giving companies such as Las Vegas Sands and MGM Resorts International their first chance to open in the country.
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