Japan is largely viewed as an untapped potential by the gambling industry. Since the country greenlit three casino licenses, several companies have been eyeing opportunities for building a casino resort in the Land of the Rising Sun.

Kyushu Resorts Japan, a consortium led by Casinos Austria, sought to grab one of the licenses and presented a Nagasaki-based casino project. The local government approved the consortium’s presentation over competitors, such as Mohegan and Groupe Partouche.

However, the project was ultimately shot down by the Casino Administration Committee, as the central government had financial concerns about the proposal. According to the Ministry of Land, Infrastructure, Transport and Tourism, Casinos Austria’s project couldn’t present enough evidence to support the certainty of financing.

The principal reason for this was the precarious situation of Credit Suisse, the financial services firm that would have supported the project.

As a result, Kyushu Resorts Japan was unable to secure the coveted gaming concession, sending the Nagasaki province back to the drawing board.  

As it turns out, the Casinos Austria-led consortium is not going to appeal the decision.

Kyushu Resorts Japan and the Nagasaki Prefecture Accepted the Decision

As the March 27 deadline for appealing the government’s decision approaches, Kyushu Resorts Japan announced that it doesn’t plan to dispute the central government’s decision to block the project.

Takashi Oya, the consortium’s chief executive, told GGRAsia that no administrative appeal request will be filed by his team. He explained that the unclearness of the government’s criteria and a lack of understanding led to the project’s downfall.  

Kengo Oishi, Nagasaki’s governor, is also expected to agree with the decision. Many expect him to make a public statement very soon.

Had the project been approved, Kyushu Resorts Japan would have constructed a $3.3 billion casino resort, primarily financed by Credit Suisse. The casino complex would have included as many as 2,220 slots, 220 gaming tables and 8 hotels.

In the meantime, the Osaka Integrated Resort project began construction, marking the coming of casino gaming to Japan.

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Richmond voters dealt a blow to the proposed $562 million Richmond Grand Resort and Casino, rejecting the project for the second time in three years. In 2021, Richmond voters were presented with the decision to support or reject a casino project, with 51% opposing and 49% favoring it. 

Child Care Advocates Express Disappointment as Richmond Rejects Casino Funding

One of the significant promises tied to the casino project was the allocation of funds for childcare programs, with an initial upfront payment of $26.5 million and an annual commitment of $19 million in casino revenue earmarked for the city. The rejection of the casino plan has now raised questions about the future of childcare funding in Richmond.

Child care advocates, including Ann Payes, CEO of the early childhood school readiness group Thrive Birth to Five, expressed disappointment over the failed casino project, reported The Richmond Times Dispatch. Payes highlighted that the annual $19 million could have significantly supported early childhood education programs, addressing issues such as lengthy wait times for child care and reducing financial burdens on families.

Richmond Mayor Levar Stoney, who invested considerable political capital in supporting the casino effort, emphasized the potential benefits during a September news conference. Stoney proposed using the casino revenue to build childcare and education centers, fund parks and recreation projects, and establish a trust fund to expand childcare access to low- to middle-class families.

Mayor Stoney Grapples with Childcare Funding Void After Casino Rejection

With the rejection of the casino, Stoney acknowledged that the plans for addressing the childcare shortage were no longer viable. The proposed $26.5 million upfront for child care centers and the annual commitment of $19 million to the Richmond Child Care and Education Trust Fund are now off the table.

Stoney’s office indicated that without the casino funding, alternative measures would need to be explored to address the childcare crisis. However, there are currently no plans to seek a tax increase for childcare funding, according to Stoney’s spokesman Gianni Snidle.

The rejection of the casino has left childcare advocates and officials exploring other avenues for funding. Organizations like Thrive Birth to Five are turning to state and federal governments for increased funding. Payes emphasized a commitment to making early childhood care happen, even if at a slower pace. The Richmond Public School system is also applying for Head Start and Early Head Start grants to increase the number of available childcare slots.

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