The government is set to begin another round of applications for locations seeking to develop integrated resorts including casinos, following Osaka¡¯s approval in 2023.

Under the integrated resort implementation law, enacted to promote tourism featuring longer stays, up to three locations can host integrated resort facilities, leaving two slots available.

The selection process will allow local governments to apply for integrated resort development for six months from May 2027. So far, Hokkaido and others have shown interest in hosting such facilities.

An integrated resort is a large-scale tourism complex centered on a casino, incorporating hotels, theaters and other attractions. The integrated resort implementation law, which sets rules for development, was enacted in 2018 to attract visitors through such resorts.

During the first application period, which began in 2021, the Osaka prefectural and city governments, as well as the Nagasaki Prefectural Government, applied. In 2023, Osaka was approved thanks to its projected economic impact, while Nagasaki was rejected for insufficient funding plans.

Ahead of the next round of applications, the Japan Tourism Agency surveyed prefectures and ordinance-designated large cities and announced earlier this month that some municipalities expressed interest in applying.

The agency plans to accept applications from May 6, 2027, to Nov. 5, 2027, and check whether they meet certification standards.

Currently, Hokkaido is considered a leading candidate. In August, Hokkaido surveyed local municipalities, and two expressed interest.

In Tokyo, there are moves seeking to develop an integrated resort, sources have said.

A key factor in the selection would be whether applicants can secure transparent, large-scale funding.

¡°Major urban areas have an advantage, as it is easier to find big companies eager to participate and secure transparent financing, while rural areas face difficulties on these fronts,¡± said a senior agency official.

Concerns remain over integrated resort development, including the potential for an increase in gambling addiction and deterioration in public safety.

During the initial selection process, some municipalities decided against applying due to opposition from local residents and assemblies, highlighting the high hurdles for integrated resort development.