MGM Osaka
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MGM Resorts International’s capital contribution to the widely anticipated casino-resort project in Osaka, Japan is expected to be $2 billion to $2.5 billion, according to S&P Global Ratings.

The ratings agency said MGM’s stake in the project is unlikely to exceed 50%, and that the most likely breakdown is 40% apiece for the casino operator and partner Orix, with the remaining 20% controlled by local investors. That echoes sentiment from the gaming company that it won’t hold a majority in the Japan venue.

Source: https://www.casino.org/news/mgm-could-spend-up-to-2-5-billion-on-osaka-casino/

Potential delays on Integrated Resorts in Japan.

Both Nagasaki and Osaka have been vying for the opportunity to secure the rights to host Japan’s first integrated resort, or failing that, have the opportunity to develop the one after that. A total of three integrated resorts are planned for Japan, which should transform Asian land-based gambling at a time when Macau is divesting from gambling and looking to boost its tourism industry elsewhere.

But Osaka and Nagasaki are understandably growing impatient with prefectures originally expecting a ruling at the beginning of the autumn, which is now passed. Both prefectures are also hoping that they can start construction right away, and hopefully in the spring of 2023. The integrated resort decision has been delayed multiple times already, with the final construction date possibly pushed back beyond 2025-2026.

Source: https://www.gamblingnews.com/news/integrated-resorts-decision-in-japan-likely-not-coming-until-2023/

Noboyuki Baba, an Osaka MP from the Japan Innovation Party, urged the government to approve the plan for the IR including a casino in Osaka by the end of the year, according to a report released by GGR Asia. Earlier this week, Baba participated in a debate with the House of Representatives, Japan’s lower chamber of parliament. He acknowledged that Osaka city and prefecture are still waiting for approval for the development of the IR. Moreover, Baba asked the lawmakers to take the decision no later than the end of the year so the project could gain further traction.

Responding to Baba’s queries, Japan’s Minister of Land, Infrastructure, Transport and Tourism, Tetsuo Saito, said that the review of the IR proposal is ongoing. At the same time, he reiterated that the government remains committed to the IR policy which is identified as “one of the major policies to be a tourism-driven country.” Saito stressed that the government’s view on this topic hasn’t changed. Still, the minister reiterated that the IR project in Osaka is being reviewed but did not provide a solid timeframe for when the process will be completed.

Source: https://www.gamblingnews.com/news/mp-urges-government-to-approve-osaka-integrated-resort-proposal/

An integrated casino resort in Japan proposed by MGM Resorts would generate $1.5bn annually in tax revenue. If the plan for Osaka is approved, said MGM CEO Ed Bowers, then the venue would out-perform any other IR in Asia in terms of revenue.

Bowers was addressing the G2E Asia Special Edition in Singapore, reports Inside Asian Gaming. He told a conference session that the plan, if approved by the country’s central government, would become a major financial boost for the Kansai region.

“It will be the most expensive IR ever built in Asia,” said Bowers, “and will employ around 1,500 people.” A decision on the competing bids for a casino in Osaka is expected to be announced as early as next month.

Source: https://www.intergameonline.com/casino/news/osaka-ir-would-generated-15bn-taxes

After the submission of a petition with 192,773 signatures, the request for a referendum was denied. Osaka Governor Hirofumi Yoshimura submitted the petition on 21 July. Osaka Ishin (Initiatives from Osaka) Party, the Komeito (Clean Government Party), and the LDP (Liberal Democratic Party) were responsible for the rejection of the petition.

"The area development plan stipulates the Osaka IR will open on the reclaimed Yumeshima in 2029." Annual economic ripple effects are a significant concern for citizens.


https://www.asgam.com/index.php/2022/08/03/osakas-prefectural-assembly-rejects-ir-referendum/

There is some disagreement about the role of the Osaka IR and it getting national funding which could make life difficult for the resorts plans.

Members of the Osaka city council have come together to establish a group called “No! Osaka IR/Casino” opposing Osaka’s IR bid and vowing to appeal to the central government to deny the prefecture and city’s application.

The group was established with the help of Osaka city council member Hirotoshi Kawashima (LDP) and former Osaka vice governor Tadakazu Konishi. They are calling for the support of local companies and other organizations and plan to submit a written request to the central government around August.

The group maintains, “The Osaka IR/Casino plan has deviated significantly from what it was initially, losing its international competitive edge and failing to comply with the standards stipulated by the national government. There is also a clear issue with the massive public fund injection.

“The national government is adamant that there must be a consensus formed with the local residents but the explanations from Osaka prefecture and city have been inadequate, even leading to a petition with 210,000 signatures directly requesting a referendum, so it can’t be said that the residents’ consent has been obtained.”

The group plans to convey these issues to the national government and request that the [IR] plan is not approved.

Source: https://www.asgam.com/index.php/2022/06/23/anti-ir-group-planning-to-appeal-osaka-ir-plans-to-central-government/

Amazing view from World expo office.

Source: https://www.linkedin.com/posts/davidcohollebeke_osaka-2025-world-expo-amazing-view-from-activity-6917306764455530496-5r9c/?utm_source=linkedin_share&utm_medium=member_desktop_web

On December 21 of the last year "Area Development Plan" for an integrated resort facility was announced. It is planned to launch the project in autumn-winter period of 2029.
The designated area takes about 770,000 square meters. In addition to the casino, facilities such as an international conference hall and exhibition hall, three hotels with the largest number of guest rooms in the city and a theater with a capacity of 3,500 people are being scheduled and planned for construction. More than 20% of all guest rooms of the hotel will be sold as suites.

Around the planned site, soil contamination by arsenic and fluorine has been confirmed and it was determined through excavation investigations that there are layers of soil that may be exposed to the risk of liquefying. The city will have to invest 79 billion yen as expenses for the measures such as disposal of contaminated soil. There will be no public expenses, however. According to the development plan it is estimated that the amount of visitors per year will be 20 million people. The economical result of the Kinki region is estimated to be around 1.14 trillion yen per year. Its expected that Osaka Prefecture will be earning 106 billion yen every year from admission fees etc.

Osaka Prefecture and the city have been putting their focus in cooperation with locally familiar companies such as Kansai Electric Power, Panasonic, Suntory, NTT West, and Kintetsu etc. Around 20 companies will contribute investments for Osaka Integrated resort, a consortium of MGM and Orix Union.

The prefecture and city have agreed on the area development plan and are planning to apply for governmental accreditation around April. It is expected that a maximum of three locations will be selected under the liberalisation programme, but currently, only three regions, Osaka, Wakayama Prefecture, and Nagasaki Prefecture, are preparing for application. The city of Yokohama has withdrawn and the Tokyo Metropolitan Government has suspended the reviewing process. According to the draft plan, business licence will be valid for 35 years with the possibility of being extended for a further 30 years.
Osaka has long been viewed as the front-runner to land one of Japan’s three IR licenses. The central government is currently fielding casino proposals from interested prefectures/cities and their preferred gaming consortiums. The bidding period is to conclude on April 28.

Sources:
https://biz-journal.jp/2022/01/post_276527.html
https://diamond.jp/articles/-/295555
https://www.ggrasia.com/osaka-city-council-votes-against-casino-referendum/
https://www.casino.org/news/osaka-council-votes-against-ir-referendum-bettering-mgm-odds/

Update on construction:

The Osaka prefectural and city governments on Dec. 21 announced a plan for developing a casino-centered integrated resort expected to open in 2029 that will be backed by 20 major companies.

Well-known firms such as Panasonic Corp., Suntory Holdings Ltd. and West Japan Railway Co. will invest in the project, according to the details announced.

The resort is planned to be built on the artificial Yumeshima island in Osaka Bay.

But the city will need to shoulder about 79 billion yen ($692 million) for soil-improvement measures, including site decontamination and control measures against soil liquefaction, according to the plan.

Source: https://www.asahi.com/ajw/articles/14507979

Google Earth images from January 2021 - you can see the solar panels on the island that are shown on the concept images.



Source: Google Earth