The consortium is expected to submit its full proposal to Osaka city on 20 July.
While this investment level is somewhat less than the US$10 billion number that had been thrown around a couple years ago by then-competitors such as Las Vegas Sands and Melco Resorts, many had feared that changing conditions in the COVID era might lead to a much lower figure.
In terms of the timeline for opening, however, it has now been pushed back even further, with the proposal suggesting that business operations may commence sometime between 2028 and 2030.
This is the first indication ever that an IR development in Japan’s first round might not have its opening in the 2020s. The new plans apparently call for opening the Osaka IR in stages.
Included in the proposal is the consortium’s agreement with the local government’s demand that it bear US$182 in costs for infrastructure improvement, in particular the extension of the Osaka Subway to Yumeshima island.
Earlier indications from company leaders were that both MGM and Orix would become equal partners, each with about a 40% stake in the consortium. Other local companies, yet to be revealed, are expected to fill out the final 20%.
The central government intends to select a maximum of three locations as IR development sites upon examination of the certification application for a facility submitted by local governments and their operator partners.
Source: Asia Gaming Brief
