On September 5, lawmakers in Osaka, Japan confirmed that a multibillion-dollar integrated resort (IR) to be built in the prefecture by MGM Resorts International and Orix Corp. will now open in the third quarter of 2030.
The IR, to be located on Yumeshima Island in Osaka Bay, was originally targeted to open in 2025, to coincide with the World Expo. But the Covid-19 pandemic delayed license applications and pushed the entire process back by years.
It also diminished interest in the new jurisdiction, once called the next holy grail of gaming, with revenues projected to rival those in Macau. At the beginning, most major global operators were ready to invest billions to get into Japan, which planned to offer a total of three licenses. But in the end, only two bids were submitted.
In April 2022, the governments of Osaka and Nagasaki and their development partners applied for licensure. Osaka’s proposal included an opening date in the fall or winter of 2029.
But the central government did not approve the plan for a full year, until April 2023, further delaying the timeline. MGM-Orix say higher costs of construction and other factors have pushed their investment into the $10 billion range, but Osaka officials say the initial investment now stands at JPY 1.27 trillion (US$8.60 billion).
According to Inside Asian Gaming, Osaka “is poised to move swiftly” and break ground on the complex as soon as the central government OKs the revised plan.
U.S.-based MGM and its Japanese partner each hold a 40 percent stake in the IR. The remaining 20 percent is held by 20 other companies, with MUFG Bank and Sumitomo Mitsui Banking Corp. providing JPY 550 billion (US$3.74 billion) in financing.
The resort complex will feature a casino, hotels, a conference center, a shopping mall, a museum and a ferry terminal. A helipad will be available for VIP guests.
The Nagasaki IR proposal is still under consideration.
