Osaka, Japan has revealed more details of an integrated resort (IR) to be developed on Yumeshima Island should the city and prefecture win one of the country’s first casino licenses.
At a December 21 meeting, the government released a draft proposal for a metropolitan IR on 490,000 square meters (121 acres) on the north side of the manmade island in Osaka Bay. Per the plan, developers would break ground in 2023 and the resort would open in the fall of 2029. Osaka’s partners in the venture are MGM Resorts International and Orix Corp., a Japanese financial services group.
According to Inside Asian Gaming, the partners expect a positive economic ripple effect in the region of JPY 1.58 trillion (US$13.7 billion) during construction and estimated annual sales of JPY 540 billion (US$4.7 billion).
Osaka will hold public hearings on the proposed IR through February. When the development plan is OK’ by both prefectural and municipal councils, it will be submitted to the central government for approval. The deadline for submissions is April 28.
Development costs have been estimated at JPY 1.08 trillion (US$9.4 billion). According to the Nikkei, MUFG Bank and SMBC Bank have already agreed to provide financing.
Some 20 additional corporations are planning to invest in the IR including contractors Obayashi Corp., Takanawa Corp. and Taisei Corp., as well as Kansai Electric Power, Osaka Gas, Panasonic, Kintetsu Group Holdings, West Japan Railway Company, NTT West Corp. and JTB, among others.
MGM Resorts Japan recently joined the Osaka Chamber of Commerce and Industry, and CEO Ed Bowers, commented, “We want to actively build relationships with local companies.”
The situation is less certain in Nagasaki, which has partnered with Casinos Austria in its IR bid. The prefecture plans an IR at Huis Ten Bosch with an estimated business scale of JPY 350 billion (US$3.04 billion) and an annual visitor count of 8.4 million.
