Japan Reaffirms Tax Exemption for Foreign Casino Winnings

Japan’s governing coalition has reaffirmed that foreign visitors will not be taxed on casino winnings, reinforcing a long-standing policy designed to enhance the country’s appeal as it prepares to enter the global integrated resort market. The Liberal Democratic Party (LDP) and its coalition partner, the Japan Innovation Party, confirmed the position on December 19 as part of discussions on fiscal policy priorities.

The decision signals continuity in Japan’s integrated resort framework and underlines the government’s intention to create a competitive and visitor-friendly casino environment. The exemption mirrors a proposal first outlined in December 2020, when coalition parties agreed that overseas gamblers should be excluded from taxation on gambling profits earned in Japan. By restating the measure, policymakers are emphasizing stability and predictability ahead of the sector’s launch.

Aligning policy with the 2030 casino debut

The timing of the announcement aligns closely with preparations for Japan’s first casino resort, MGM Osaka, which is scheduled to open in autumn 2030. In a joint statement outlining tax reform principles for the 2026 fiscal year, coalition leaders stressed the importance of settling taxation rules well in advance to provide certainty for operators and international visitors alike.

This marks one of the first major policy signals under Prime Minister Sanae Takaichi, who assumed office in October. As Japan’s first female prime minister, Takaichi leads a coalition that has been consistently supportive of integrated resort development. Cooperation between the LDP and the Innovation Party has helped keep the IR agenda moving forward with limited political resistance.

Framework set for future resort bids

Alongside the tax exemption stance, the national government has taken further steps to expand the integrated resort program. On December 17, a draft cabinet order proposed May 6, 2027, as the tentative start date for a new application window, allowing additional local governments to submit bids for IR projects beyond Osaka.

By outlining a clear future timetable, Tokyo is giving regional authorities a defined target while signalling its commitment to progressing the sector despite earlier delays and rising construction costs. The approach reflects a longer-term strategy aimed at gradually broadening Japan’s casino footprint while maintaining regulatory clarity and investor confidence.