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Hokkaido outlines casino revenue uses as Japan’s next IR round approaches

Tomakomai and Hakodate have expressed interest in hosting an integrated resort as Hokkaido prepares its policy framework ahead of Japan’s 2027 application window.

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Key Points
Hokkaido plans to direct potential casino revenue toward addiction treatment, welfare, public safety and tourism measures 
Japan will accept applications for up to two additional IR approvals between May and November 2027
Eight Hokkaido business groups are preparing to request that the prefecture pursue an IR development

Hokkaido is preparing to set out how revenue from a potential casino resort could be used across the prefecture as Japan moves towards its second application round for integrated resort developments. 

The Hokkaido Prefectural Government plans to include specific examples in a revision of its Basic Principles Regarding IRs, which is expected to be submitted to the Prefectural Assembly during the session beginning September 8.

Proposed uses include strengthening medical services for gambling addiction and supporting crime prevention and public safety measures. Revenue could also fund childcare, cultural programs and tourism initiatives, including measures addressing overtourism and regional development.

The approach reflects Japan's wider regulatory framework for casino resorts. Operators must pay 30% of monthly casino gross gaming revenue through levies divided equally between the national government and the prefecture or municipality hosting the IR.  

Authorities are expected to allocate revenue from the levy towards areas including tourism, regional development, social welfare and cultural promotion.

Hokkaido previously identified Tomakomai as its preferred IR candidate location, citing transport accessibility and projections that it would generate the highest IR revenue and tax effects among locations considered in the prefecture. 

The prefecture ultimately decided against participating in Japan's first application round in 2019 amid environmental concerns.

Interest has since returned. Tomakomai launched an international resort research project in March 2026, with a contractor selected in April. 

Tomakomai and Hakodate have both expressed interest in an IR, while eight regional economic organizations, including the Hokkaido Economic Federation, are expected to submit a request to Governor Naomichi Suzuki supporting development.

The renewed activity comes ahead of Japan's next national selection process. The Japan Tourism Agency confirmed in March that prefectures and designated cities can submit development plans from May 6 to November 5, 2027. 

Japanese law allows three IRs nationally, leaving two positions available because Osaka's Yumeshima project remains the only certified development.

Construction of the MGM Resorts International and Orix-backed Osaka IR began in April 2025, with opening targeted for fall 2030.

Wakayama has also re-emerged as a possible contender for the next application round. Governor Izumi Miyazaki said in August that he remained open to an IR at Wakayama Marina City after the prefecture's previous proposal was rejected by its assembly in 2022. Sasebo in Nagasaki Prefecture is also considering reviving its IR ambitions.

Good to know

Japanese residents entering an IR casino will face a ¥6,000 ($38.37) admission charge, split equally between the national and local governments, alongside limits of three admissions in seven days and 10 in 28 days

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