MGM Resorts International, one of two bidders for an integrated resort (IR) license in Japan, says its proposed $9 billion Osaka IR would generate tax revenues of around US$1.5 billion, making it one of the most profitable in Asia.
Speaking at G2E Asia, MGM Resorts Japan President and CEO Ed Bowers said the property would benefit the entire Kansai region and the nation as a whole.
“This will be the most expensive IR ever built in Asia,” he said. “The project will employ around 15,000 people.
“Between casino tax and entry fee payments we expect the project to contribute around JPY106 billion annually to the city and the prefecture of Osaka, which depending on the prevailing exchange rate will equate to between US$800 million and US$900 million (currently US$773 million).
“An equal amount will also be contributed to Japan’s national government.”
According to CDC Gaming Reports, Bowers said revenues at MGM’s Osaka IR would “exceed those of most other IRs in Asia based on the Kansai region’s population base of around 25 million, proximity to three major airports and connection via high-speed rail to other major metropolitan centers around Japan, specifically Tokyo.”
The central government is expected to announce its decision on the two proposed IRs soon. It wasn’t much of a bidding war: in 2016, when IR legislation first passed during the Shinzo Abe regime, Japan was called “the next Holy Grail” of gaming, with revenues expected to rival Macau’s. But the impact of Covid-19 has taken the wind out of those expectations. Though up to three licenses were available, only two bids came through: MGM’s, and a bid by Casinos Austria to develop an IR in Nagasaki.
As the company waits for the results, it is “focused on the preparation of schematic design drawings and on the completion of geological surveys of the site,” Bowers said. “After we receive approval from the central government, we will move into detailed design work with a view to commencing site work by mid-2023.
“If approved we are hopeful to complete construction and open the IR by the end of 2029.”
