MGM’s Osaka project would generate US$773m a year in tax revenue

MGM Resorts is one of only two casino operators bidding Japan’s central government for a gaming concession, the other being Casinos Austria. The Las Vegas-based casino giant, which in addition to its domestic casinos operates two integrated resorts in China’s Macau, hopes to build an integrated resort casino in Osaka.

Though its Osaka project is still being developed, it’s expected to come with a price tag in the neighborhood of US$7.5 billion to US$9 billion. The massive bet will eventually pay MGM shareholders a return, Bowers trusts.

“We believe Japan will be a great gaming market. It has close to 130 million people and very large clusters in a handful of metropolitan areas,” Bowers said.

The Kansai area where Osaka is located, Bowers continued, is home to about 25 million people. The MGM executive added that Japan’s well-developed infrastructure, paired with the nation’s fast-growing base of foreign tourists prior to COVID-19, rendered the opportunity too good to pass.

“We’re hoping for an approval from the Japanese national government later this year. Presently, we’re focused on the preparation of schematic design drawings and on the completion of the geological service of the site,” said Bowers.

“After we receive an approval from the central government, we will move into our detailed design work with a view to commencing site work by mid-2023. If approved, we are hopeful to complete the construction and open the IR by the end of 2029,” Bowers concluded.

Defining the success of MGM Osaka might be up for debate. But Bowers floated some lofty tax benefits during his G2E Asia address. The executive says Osaka should plan to receive US$773 million a year in tax revenue once the IR is fully operational.

MGM Osaka is prepping Osaka’s Yumeshima artificial island for its sprawling resort destination. The current blueprint includes three hotel options with 2,500 combined rooms, approximately 732,000 square feet of convention space, and a 3,500-seat theater. MGM has not yet detailed the casino space. But Japan’s gaming law limits the casino to 3% of the resort’s total interior square footage.

Source: GMB / Casino.org (By Devin O'Connor)