JAPAN Law and Practice Contributed by: Masayuki Fukuda, Nagashima Ohno & Tsunematsu
own and report the result of such examination to the Commission. 4.4 Availability of Licences Under the IR Implementation Law, the maximum num- ber of approved IR areas is initially three (the appropri- ateness of such number will be reviewed seven years after the issue date of the initial approvals and may or may not be increased up to ten). Since each IR area may have only one casino operated by one casino business operator, the maximum number of casino business licences is also initially three. So far only one casino business operator (Osaka IR) has been granted The duration of the Minister’s authorisation on the IR implementation plan is initially ten years and, there- after, it shall be renewed every five years. The local municipal council’s approval will be necessary for the initial and every renewed authorisation. The risk of sus- pension of the IR/casino project due to disapproval by the municipal council or otherwise upon such renewal is a big open issue (the so-called Article 10 issue). The duration of a casino business licence is three years and a renewal will be required to extend it for another three years. In the renewal process, the Commission will check whether the licensee has maintained its integrity during the previous licence period. The casino business licence may be revoked by the Commission: • if the licence was obtained by making a false state- ment or by using any other unjust means; a casino business licence. 4.5 Duration of Licences • if the licensed casino business operator has not commenced its casino operation business within six months after passing the inspection of the con- structed casino facility; • if the casino operation business has been sus- pended for six months or more without any justifi- able reason; or • in certain other cases. If the approval of the relevant IR Area Implementa- tion Plan is revoked, or if the licence of the relevant casino facility provider is revoked or invalid, then the
licence of the casino business will also be automati- cally revoked. 4.6 Application Requirements The key application requirements for casino business operators are: • the capability of operating a casino business in terms of human resources, social credibility, finan- cial stability and anticipated profitability; • the floor area for casino activities; • the technological quality of the casino facility’s structure and equipment; • the technological quality of the casino-related equipment; and • certain other factors. The offices of the applicant casino business operators must also have sufficient social credibility. Strict background checks on the casino business operator’s officers, directors, employees, subsidiaries, affiliated companies, and other relevant persons and entities (including external persons who have control- ling powers over the relevant casino operation) will be carried out during the above licensing process. Detailed information will be required to be submitted to the Commission to check the integrity and sound- ness of the IR operator’s business. A licensed casino business operator shall be a com- pany incorporated under the Companies Act (typi- cally, a kabushiki kaisha (KK) or a godo kaisha (GK)). There are no residency or nationality requirements to become an owner of an IR/casino business operator. Licensed casino business operators and licensed casino facility operators must periodically file with the Commission lists of all holders of voting rights, shares, or interests, pursuant to the rules of the Commission. 4.7 Application Timing The approved IR operator applicant will file with the Commission an application for a licence for casino business operation, and the Commission will examine whether such applicant satisfies certain eligibility cri- teria. The standard licence examination period is not published by the Commission.
254 CHAMBERS.COM
Powered by FlippingBook