Key Moments:
- Sanae Takaichi has been selected as Japan’s first female prime minister, securing 237 votes in the lower parliament.
- Takaichi pioneered the integrated resort (IR) bill back in 2013, laying the groundwork for casino legalization in Japan.
- The Japanese government is preparing to open a second IR license application window, with up to two additional licenses possible by 2027.
Historic Leadership Change in Japan
Sanae Takaichi has made history by becoming Japan’s first female prime minister, following a parliamentary decision that appointed her as the country’s 104th leader. Often referred to as Japan’s “Iron Lady,” Takaichi garnered 237 votes in the lower parliament out of a possible 465, after her Liberal Democratic Party (LDP) struck a last-minute coalition deal with the rightist Innovation Party. Despite forming this coalition, the alliance falls just short of a majority, foreshadowing potential political hurdles ahead.
Shift Toward Conservative Governance
This leadership change signals a definitive swing toward conservative values within the LDP, especially after setbacks in July’s upper house elections. Analysts indicate that, although this shift has political implications, the trajectory of Japan’s integrated resort (IR) sector remains unaffected—largely due to Takaichi’s established role in shaping the IR legislative process.
Takaichi’s Pivotal Role in Casino Legislation
In 2013, Takaichi played a crucial part in the introduction of Japan’s landmark integrated resort legislation. She submitted the bill to legalize casinos and secured the endorsement of coalition partner New Komeito, subsequently announcing the bill’s approval to parliament. Her efforts have cemented her reputation as a prominent advocate of casino liberalization in Japan.
Takaichi continues to maintain a firm position on online gambling regulation. Ahead of a scheduled March 2025 parliamentary session on cybercrime and public safety, she has voiced strong opposition to online casinos, linking them to mobile criminal syndicates and highlighting their adverse financial consequences. She has urged government ministries to intensify measures restricting online casino advertisements and to address issues related to gambling addiction.
Prospects for IR Expansion Amid Leadership Transition
Takaichi’s ascension to the prime minister’s office comes while the Japanese central government is reportedly finalizing plans to open a second application period for IR licenses, with up to two more licenses possible by 2027 as provided for in the IR Promotion Bill. Interest from municipalities such as those in Hokkaido suggests growing competition in the IR sector.
| IR License | Location | Consortium | Investment Estimate (USD) |
|---|---|---|---|
| First | Osaka | MGM Resorts International-led | $10 billion |
Up to now, only one IR license has been granted—to a consortium led by MGM Resorts International in Osaka, which commenced development earlier this year with an estimated US$10 billion investment. The forthcoming licensing round is anticipated to reshape the landscape of gaming and tourism in Japan in the next several years.
Ongoing Challenges and Regulatory Outlook
Despite this historic milestone, Takaichi’s coalition presently lacks a clear parliamentary majority, which could complicate her legislative initiatives. Observers are set to monitor her administration as Japan deals with economic and diplomatic challenges during this period of transition.
Nonetheless, Takaichi’s leadership style embodies a careful balance: promoting economic growth opportunities from integrated resorts while sustaining robust controls on online gambling and digital media. Her approach reflects an intent to navigate both the financial potential and the social responsibilities tied to Japan’s evolving gambling industry.
- Author
Daniel Williams
