The government is considering collecting as tax some 30 percent the revenue made by operators of casinos run at so-called integrated resorts in the country, sources have said.
Revenue from the tax, excluding a portion that will be used to cover administrative costs at a regulatory body, will be equally split between the central government and the governments of the local communities that host the casinos.
After discussions with the ruling Liberal Democratic Party and its Komeito ally, the central government hopes to include a specific tax rate in planned legislation related to the operations of integrated resorts, which is expected to be submitted to the current regular session of the Diet, the sources said Monday.
For casino operators whose annual revenue exceeds ¥300 billion, the government may impose higher tax rates on revenue in excess of that amount, according to the sources.
Specifically, it plans to set the rate at about 40 percent for the portion from over ¥300 billion to ¥400 billion and at about 50 percent for the portion from over ¥400 billion to ¥500 billion, the sources said.
According to estimates by the government, the burden of comparable casino taxes stands at some 20 percent in the U.S. state of Nevada, some 30 percent in Singapore and some 40 percent in Macau.
The government believes the casino tax rate in Japan should be set at a level that secures adequate funding for social security provisions and measures against gambling addiction, while helping casinos survive in competition against those overseas, the sources said.