The integrated casino resort graft verdict of Tsukasa Akimoto and his former policy secretary, Akihiro Toyoshima, has been upheld by the Supreme Court of Japan following a failed appeal attempt by the duo. This decision is a confirmation of Japan’s unwavering intolerance of corruption in its upcoming casino industry.
Japan’s Supreme Court has dismissed an appeal from Tsukasa Akimoto, a former member of Japan’s House of Representatives, against his conviction in a high-profile graft case. The 53-year-old was found guilty of being part of a bribery ring in 2017 for the nation’s forthcoming integrated resort casino project. This decision means that Akimoto’s sentence of four years of prison time and a fine of approximately ¥7.6 million will stand.
The Supreme Court’s First Petty Bench, led by Justice Masaaki Oka, also dismissed an appeal from Akihiro Toyoshima, 46, the former policy secretary to Akimoto. He also faced charges related to the same corruption case tied to a casino-integrated resort project. The court upheld his sentence of two years in prison and a four-year suspension.
The case’s first trial found Mr. Akimoto guilty of accepting bribes totaling approximately JPY 7.6 million (~ $69,200) from Katsunori Nakazato and Masahiko Konno. These two individuals were described as advisors for the Chinese company 500.com Ltd, currently BIT Mining. The company was among several entities vying for a license to operate an integrated resort with a casino in Hokkaido.
Tokyo’s District Court convicted Mr. Konno and Mr. Nakazato in October 2020 for bribing Mr. Akimoto. Both received suspended prison sentences for their involvement in the crime. The case also implicated Fumihiko Sato, 50, and Akito Awaji, 54, for attempting to manipulate the testimony of a former consultant for 500.com. Allegations claimed that the two offered a JPY 20 million (roughly US$191,000) cash reward to persuade the consultant to provide false testimony in favor of Tsukasa Akimoto during his corruption trial.
Sato and Awaji admitted to the charges at the Tokyo District Court. Awaji explained his actions, saying Akimoto’s representatives told him he had not accepted bribes. He trusted the information and had no reason to doubt his word. Believing the money would tempt the witness, Awaji urged Representative Akimoto to hand over the cash.
Prosecutors described the incident as a serious attempt to obstruct justice. They argued that bribing a witness was a ‘malicious act’ to undermine the trial process. The law against bribing witnesses was only introduced in 2017, and the prosecution emphasized that such actions would severely hinder the pursuit of truth in court. Meanwhile, Tsukasa Akimoto faces separate charges for allegedly trying to bribe a witness himself. However, his legal team has firmly denied involvement in the alleged wrongdoing.
The corporation, currently operating as BIT Mining Ltd, had been assessed a $54 million penalty for going against the U.S. Foreign Corrupt Practices Act. However, the U.S. Department of Justice revealed that the company faced financial difficulties and could not pay the original fine. The department opted to credit up to $4 million against a civil penalty in connection with a parallel investigation.
Zhengming Pan, a former CEO of 500.com and a Chinese national, was charged with violating the U.S. Foreign Corrupt Practices Act. The charges relate to alleged misconduct during efforts to establish the Hokkaido casino resort in Japan’s northernmost prefecture. Details of these developments were shared in press releases issued by the Justice Department and the SEC.
“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly US$2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan… Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts… Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding corporate and individual wrongdoers accountable for their crimes.”
The Securities and Exchange Commission described the actions of 500.com as a ‘widespread bribery scheme’ in its statement. The SEC also reported that the company sought influence through illicit payments, including cash bribes, extravagant trips, and lavish entertainment. Interestingly, the governor of Hokkaido had already made a significant decision before the bribery allegations became public. In November 2019, the governor chose not to propose the prefecture as a candidate site for Japan’s initial phase of casino development.
This entire bribery case brings to light Japan’s hurdles in bringing its vision for integrated resorts (IRs) to life. The government deems these projects a key part of its strategy to boost tourism and attract significant economic investment, but actualizing this vision has proven challenging. Progress has been slow, and the MGM-Orix project in Osaka is one of the few developments moving forward.
Meanwhile, hopes for similar projects in regions like Hokkaido and Okinawa have faded. BIT Mining ultimately pulled out of its bid. MGM Osaka, Japan’s first integrated casino resort, is expected to open by the end of 2030. The goal of this massive project is to stimulate regional economic growth, all while adhering to strict regulations to ensure its success. Other areas, like Nagasaki, are also interested in hosting integrated resorts.
Nagasaki’s prefecture recently revealed that it had received a Japan Tourism Agency questionnaire hinting at possible plans for future expansion. However, there have been no official updates on the new application process. Meanwhile, the Japan Casino Regulatory Commission remains crucial in overseeing compliance.
Meanwhile, the National Diet approved the next Japan Casino Regulatory Commission installation. This five-member panel operates as an external bureau of the Cabinet and is tasked with ensuring the orderly development and safety of casino facilities across the country.
Japan’s legislature has Takamatsu prosecutor Takafumi Sato to serve as the next chair of the regulatory agency. He will take over from Michio Kitamura starting January 7, 2025. A former head of the National Tax Agency’s National Tax College, Junichi Kakimizu, will join the Casino Regulatory Commission. He will take over from Hiroyuki Ujikane, who has completed a five-year term that began in January 2020.
Two commissioners, Keiko Ishikawa and Hirofumi Kitamura, will retain their positions, as they have only severed half their terms so far. Additionally, Commissioner Watari Michiko will be reappointed for a second five-year term on the commission.
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