Regulations on Casino In Japan Favourable For Dragon
The next big battlefield for the casino industry is at Japan. Japanese loves gambling and the casino industry is forecasted to be worth $40billion dollars. And now the country is at the cusp of paving the way for opening their first casino in the next few years. Some predict that in this year the governing coalition of the Liberal Democratic Party and Komeito may secure parliamentary passage of an anti-gambling addiction measure known as the “Basic Bill on Gambling Addiction Countermeasures”. With this, it will pave the way for the Integrated Resorts (IR) Implementation Bill, a key step on the path to Japanese casino licences eventually being conditionally issued and projects being built.
The opening of casinos in Japan sounds all rosy for junket operators. And some like Suncity Group are already eyeing the opportunity in Japan. But there are some likely proposed regulations that would effectively ban junket operators from the gambling resorts in Japan. Regulations for exchanging money for chips and lending money for betting are likely to rule out third parties like junkets and have to be managed by the casinos internally.
This will be bad news for junket operators unless they can find a more innovative approach to doing their business. Junkets’ margins have been mostly reaped from these financing of stake money for the VIP gamblers (only a small part comes from the cut of the casino’s winnings), and not being able to “lend money for betting” will make it unprofitable for junket operators.
However Dragon is in an unique position to be able to leverage from this inflexion of regulations by countries opening up to the casino industry. Dragon is not lending money for VIP gamblers but merely facilitating the transfer of the VIP’s own stake money to the casinos. I will elaborate more on this opportunity but first let’s analysed how Japan or other developed countries will shape their regulations.
Countries, who are opening up casinos for the first time, are abandoning the junket system for the “player agent system”, as they want to stay away from some of the less desirable aspect of the junket system; illegal lending and money laundering etc. Singapore is an example which has successfully implemented the “player agent system”.
Singapore does not allow the junket system and uses the “player agent system” in which the licensed agents can attract VIP players to the casinos but these agents cannot grant credit to the players; effectively eliminating the credit/loan system and requiring the players to stake with their own funds.
Japan lawmakers have been advised to ban the junket system and they have pointed out that the country’s casino regulatory framework would be broadly based on those of Nevada and Singapore, which could mean that a form of the latter’s player agent system could be introduced in Japan.
With the new system, the junket operators will have to adapt to facilitate the transfer of funds from the VIP gamblers. Junket operators traditionally profit from lending money for the VIP gamers but Dragon can profit from just stake money transfer using Dragon Coins and for junkets/casinos to use the Dragon Coins and Dragon Global Chips for gaming. With likely regulations by Japanese authorities on money lending by third parties, Dragon will be able to become the solution for junkets to play by the book and be a “player agent” to bring VIP gamers to Japan while using Dragon platform to transfer VIP gamers’ stake money to the casinos in Japan for gaming.
Dragon coin would be the solution as transferring crypto currency is lower in costs and also Dragon coin will allow direct exchange into gambling chips at the dragon owned or affiliated casinos, whether in Japan or elsewhere.
The opportunity in Japan is favourable to Dragon as junket operators will no longer to be able to “lend money” to VIP gamers and reply mostly on gains from the casino winnings. Dragon Coins will provide the means for the junket operators to be able to meet these new trends and for the industry to continue to prosper. Go Dragon!
BoonsterX
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