Preparations underway for a US$8.6 billion project
The Osaka integrated resort is a collaborative effort between the renowned international casino giant, MGM Resorts International, and Orix Corporation, each with a 42.5% stake. The initial phase involves solidifying the land to ensure its stability for the complex, with preparatory works estimated to cost approximately US$173 million.
While the property owners are currently covering these costs, the local government has committed to reimbursing the funds upon the project’s completion. The grandeur of the Osaka IR comes with an estimated development cost of US$8.6 billion, as outlined in the agreement.
Yumeshima Island set to host the resort
Spanning 52 acres on Yumeshima, a 700-acre (over 2.8 square kms) artificial island in Osaka Bay, the completed resort will include three hotels from different brands, offering a total of 2,500 rooms for guests. Positioned to provide a substantial boost to local tourism, the resort will feature a massive 730,000-square-foot (68,000 square-metre) convention space, with the casino occupying only 3% of the total indoor area.
Targeting 2030 for the grand opening
Barring unforeseen delays, the Osaka integrated resort is expected to welcome its first guests in 2030. This ambitious timeline aligns with the vision to position Osaka as a prominent player in the global casino and entertainment industry.
Gaming takes centre stage in Japan
Japan’s foray into the casino industry was made possible by a 2018 law that relaxed the country’s stringent stance on gaming. Despite legislative hurdles and pandemic-related delays, MGM Resorts persisted in its commitment to the project, emerging as a pioneer in bringing gaming to Japan. The Osaka IR Corporation, owned jointly by MGM Resorts and Orix, holds a 42.5% stake each, with the remaining share distributed among various investors.
The Osaka integrated resort is poised to become a magnet for both domestic and international visitors. Anticipating substantial traffic due to Osaka’s dense population and high-income residents, the resort aims to draw 6 million foreign tourists and 14 million domestic visitors, with an initial revenue target of US$3.6 billion annually. Importantly, it is expected to attract new gamblers without diverting traffic from established gaming regions in Asia, such as Macau, Singapore, or the Philippines.
As the Osaka integrated resort project unfolds, Japan is gearing up to make its mark on the global gaming landscape, creating new opportunities and experiences for both tourists and locals alike.
Source: Sigma.World
