for early access to the latest igaming videos!
and get the latest igaming news first!
The world of Japanese gaming legislation has just witnessed a change of guard. The country’s Casino Regulatory Commission formalized it earlier this week, raising Toshiyuki Shimada to the rank of Secretary General. This announcement comes amidst what appears to be a critical juncture for Japan’s gaming sector, particularly when one considers all the legislative reforms that have been going on lately.
Shimada’s promotion is more than the usual administrative reshuffle. He’s not coming over from the Deputy Secretary General position for nothing; he already knew the way the commission works and what to anticipate in terms of problems. That sort of institutional continuity is reassuring when you’re working with difficult regulatory problems that involve billions of yen in economic activity.
Background and Experience Matter
Before joining the Casino Regulatory Commission, he worked at Japan’s Ministry of Finance. Shimada dealt with managing an industry that brings in considerable tax revenue and involves intricate financial management. The Finance Ministry handles anything from the allocation of budgets to economic policy, so having someone with that background in charge of the day-to-day business of the gaming regulator could mean important input for the position.
The outgoing Secretary General, Takyua Sakaguchi, had been in the role for two years. Two years is long enough to make huge policy changes while being short enough so that new perspectives are brought in fairly regularly.
The Structure Behind the Appointment
The manner in which Japan makes these appointments reflects how seriously it’s treating gambling regulation. Under their system of law, five of the commission’s senior executive members, including the position of Secretary General, are required to be nominated by Parliament. That’s not a process that gets started casually or without a great deal of scrutiny.
Commission members have five-year terms, which is a stable provision as well as periodic rotation of ideas and strategies. This system is a mirror of Japan’s systematic method of dealing with industries that entail both potential economic payoffs and social hazards.
The coincidence of Shimada’s appointment with some significant financial milestones for the commission comes as Japan’s cabinet has released a draft budget of JPY3.71 billion, or roughly $25.6 million, for the commission this year. That is a large investment in regulatory supervision, particularly for a nation that is only now opening up to licensed casino business.
Taking Over During Regulatory Activity
Shimada is coming into this position at what can only be termed a busy time for the regulation of gambling in Japan. There has been a wave of legislative activity intended to bring more control over online gambling businesses, and there has been a significant amount of attention devoted to regulating online sports betting. The momentum for this heightened focus has been the revelation that illicit betting in Japan stands at JPY1 trillion, a staggering sum that attracted the eye of lawmakers and regulators.
The commission already regulates online casino businesses as well as MGM Osaka, Japan’s sole legally sanctioned land-based casino resort. That dual mandate will have Shimada handling both virtual and real-world gambling businesses, each having its own distinct regulatory issues.
Recent legislative actions have brought fresh levels of complexity to the commission’s activities. The House of Representatives approved a new bill on online casinos earlier this month, aimed at lowering gambling harms. Parliament approved yet another bill last week, which is aimed at blocking illegal online gambling, with the view to limiting addiction, debt issues, and anti-money laundering threats.
What is in Store for Japan’s Gambling Industry
The addition of Takafumi Sato as the new Chair of the regulator last January resulted in Shimada now working with comparatively new top leadership. This may create an environment where innovative solutions to serious issues are more probable.
For Shimada, he must balance the revenue returns that gambling can bring and hold on to the social safeguards Japanese society expects from regulators. With his background and current regulatory landscape, there’s little doubt that his time as Secretary General will be far from typical.
Source: Gambling Insider
