Japanese and Macau gaming related stocks on Monday saw an upswing in share price after Japan’s casino bill passed a Lower House committee on Friday, according to media reports.
Michael Penn of Shingetsu News Agency speaking to AGB maintains that the LDP and Isshin are still expected to pass the Casino Bill through House of Representatives on Tuesday.
However, it is to be noted that on Monday LDP House of Councillors lawmakers held a meeting in which the majority of opinions were negative, pointing out that there is yet no policy on gambling addiction and money laundering. They also fretted the consequences of running roughshod over normal parliamentary behavior and just pushing the Casino Bill to a quick vote. Even though this was a ruling party meeting, the majority of expressed opinions were urging caution.
Should the bill become law, the government will be obliged to take legislative steps within a year to legalize casinos, bringing Japan’s potential $10 billion market to the forefront.
Bernstein, in a note over the weekend said a first casino likely would not open until 2023.
“If the enabling bill passes, the next step would be to move forward with further legislation as there is a two-step process in the casino legislation. The further legislation would need to be fully drafted and debated in 2017 (or could slip into 2018 depending on scope, debate and other pressing matters). After legislation is passed and regulations are developed, the selection process would occur.”
“Adding in time for the selection process and development period means the first casino likely would not open until 2023 (we would not envision temporary casinos being authorized as has occurred in some US regional markets),” said the brokerage.
According to Barron’s Blog, Wynn Macau stocks rose 2.7 percent, MGM China gained 2.4 percent, Galaxy Entertainment rose 1.8 percent, and Sands China went up 1.1 percent on Monday.
South China Morning Post reported a rise in Japanese gaming shares, with Niraku GC Holdings, up as much as 139 per cent to HK$1.67, while its peer Dynam Japan Holdings Co also soared as much as 44 percent to HK$14.70 on the Hong Kong Stock Exchange on Monday.