Akihabara News (Tokyo) — With basic government approval now in hand, MGM Resorts, the Orix Corporation, and their smaller partners are entering the process of finalizing plans for the Osaka casino resort, expected to cost about US$10 billion to construct.
“The next milestones include finalization of agreements, finalizing the design, and then construction of the project,” explained Ed Bowers, president and chief executive of MGM Resorts Japan, at Global Gaming Expo Asia.
The estimated timeline for the opening of the Integrated Resort (IR) continues to creep a bit backward. At the May 2 earnings call, MGM President and CEO Bill Hornbuckle put it somewhere in the first half of the year 2030.
He added that the land lease agreement would likely be finalized in the very near future, and that breaking ground on the construction site will probably occur slightly before or after the end of this calendar year.
A month ago, the Resona Research Institute chipped in with its recommendations for the Osaka IR, calling for additional attractions such as an extra commercial facility, a theme park, and marine leisure facilities.
MGM’s current estimation is that the IR will drive ¥420 billion (US$3 billion) in annual casino-related revenues and about ¥100 billion (US$720 million) in annual revenues from attractions not directly related to gambling.
The Resona Research Institute reckons that these non-gambling annual revenues could be boosted to about ¥260 billion (US$1.9 billion).
It is not clear whether or not MGM has any intention of integrating Resona’s suggestions or is even seriously considering them.
MGM’s Online Casino Hiccup
Although they appear to have been decisively defeated at this point, with polls now showing local public support swinging behind the Osaka IR, opponents of the project have not abandoned their anti-casino campaign efforts.
Most recently, the Association for Considering Gambling Addiction Problems petitioned the Japan Tourism Agency to revoke permission for MGM to build the Osaka IR, citing its involvement in online gambling.
Neither side disputes the main facts. Last September, MGM acquired a majority stake in the Swedish online casino firm LeoVegas. Up until that point, LeoVegas was illegally allowing Japan residents to gamble on its site. Before completing the acquisition, MGM asked LeoVegas to block access to its site from within Japan.
MGM argues that the potential conflict was thus resolved before it started, while the citizens group argues that MGM should be held responsible for clarifying what happened to the revenues illegally gathered from Japan before it took over the company.
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