MGM Resorts’ Japan subsidiary is firing back against allegations that it took part in illegal online gaming after the September 2022 acquisition of iGaming company LeoVegas.
The criticism originated from an anti-IR group, the Society for Considering Gambling Addiction Problems, which says MGM acquired “illegally obtained proceeds” when it bought LeoVegas. The group contends that LeoVegas “operated an illegal online casino targeting Japanese players.”
“Therefore, it is very likely that MGM has taken in the criminal proceeds illegally obtained by LeoVegas,” the group alleged in a statement. “If this is true … MGM is ineligible and will not be allowed to participate” in the country’s new IR industry.
It deemed the approval of the Osaka IR plan by the Minister of Land, Infrastructure, Transport and Tourism as “premature,” and said the approval of the plan “should be revoked until it is clearly confirmed that MGM has not taken in LeoVegas’ criminal proceeds.”
MGM Resorts Japan and its local partner, Orix Corp., plan to build a $10 billion resort complex on Yumeshima Island in Osaka Bay. Their development proposal was approved by the Japanese government in April. The IR is expected to open sometime in 2030.
MGM called the group’s accusation “completely unacceptable because it is unfounded and may lead to misunderstanding. LeoVegas is a mobile gaming company that was once a publicly traded Swedish company until September 2022, when MGM acquired a majority stake in the company.
“Before completing its acquisition, MGM asked LeoVegas to block access to its site from within Japan,” the company statement continued.
When the $603 million deal closed, MGM President and CEO Bill Hornbuckle called it “a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide,” “grow our global digital gaming business and maximize the full potential of our omnichannel strategy.”
