Last week, officials in Osaka, Japan announced that an MGM Resorts Japan subsidiary has signed a basic agreement to develop an integrated resort (IR) in the region. MGM has also completed drafting an area development plan.
The subsidiary, Osaka IR (SPC), was established by MGM and its main local consortium partner, Orix Corp.
“MGM and Orix hope to contribute to sustainable economic and tourism growth for Osaka, the greater Kansai region and Japan as a whole through this project,” MGM’s statement said. “We will continue to work with both public and private sectors to promote the processes to make this goal a reality.”
According to Inside Asian Gaming, the objective of the basic agreement is to establish that, if the plan is approved, “SPC shall be the operator” of the IR, to be developed on Yumeshima Island in Osaka Bay. The central government of Japan will choose up to three IR operators in the new industry’s first phase. Deadline for applications is April 28.
In related news, an Osaka citizens’ group will gather signatures calling for a referendum on the planned IR. According to the Nikkei Asian Review, the group will collect signatures from March 25 to May 25, giving citizens a chance to debate the pros and cons of a local IR. The actions follows a disclosure by the Osaka city government that it will set aside JPY 5.85 billion (US$51 million) of its budget for the next year for infrastructure costs related to the development.
A similar referendum drive was recently vetoed in Wakayama. In addition to Osaka, Wakayama and Nagasaki are also planning to apply for an IR license. Up to three will be allowed in Japan, under the current framework for liberalization.
