Osaka Takes Heat on IR Land Expenses

Akihabara News (Tokyo) — Osaka Mayor Ichiro Matsui is taking political heat after it was revealed that local taxpayers will be footing an additional ¥80 billion (US$700 million) bill to decontaminate the land earmarked for the MGM-Orix Integrated Resort (IR), including a casino.

“It is natural that the city—the landowner—should bear the cost of providing safe and secure land to the business operator which will rent it,” Matsui explained.

This extra expense became necessary after arsenic and fluorine exceeding the standard amounts were found ​​in the soil of the planned construction site at Yumeshima. Additionally, the land may be vulnerable to liquefaction in the event of a major earthquake.

Critics point out that warnings about these matters have been issued for years, but previously Matsui had dismissed them and had insisted that local taxpayers would face no extra financial burden.

On Twitter, Matsui defended his policies against such criticism, declaring, “The economic effect of the IR will be ¥1.2 trillion (US$11 billion) per year, the contribution of the casino is ¥55 billion (US$500 million) every year in Osaka city alone, and the land lease fee is ¥2.5 billion (US$22 million) every year. These are the returns to the citizens. Is this still a citizen’s burden?”

He continued, “I consider it an investment when considering the returns of the IR business.”

Matsui went on to criticize how the local media is reporting the issue.

At any rate, Osaka also revealed an updated basic IR plan, including notice that the casino resort is not expected to open its doors to the public until late 2029, about five years later than initially hoped.

The plan calls for the MGM-Orix led consortium to operate the Osaka Yumeshima IR for 35 years. The total initial investment is anticipated to be about ¥1.8 trillion (US$15.8 billion).

It is estimated that the IR will attract about 20 million visitors a year, consisting of 14 million domestic visitors and 6 million visitors from abroad.

Panasonic, Suntory, and JR West are among the roughly twenty other companies expected to participate in the consortium, holding a combined 20% share, while MGM Resorts and the Orix Corporation each hold a 40% share.

Recent Integrated Resorts Related Articles

Mie Governor Puts Brakes on Kuwana IR Bid

Major Changes to Nagasaki IR Design

Japan’s Casino Industry Dodges Suncity Bullet

Wakayama IR Signature Drive Succeeds

Kuwana Reemerges as IR Candidate City

Doubts Grow Over Wakayama IR Financing

Universal Struggles with Pachinko Machine Sales

Clairvest Profits Exceed US$22.6 Million Last Quarter

Casino Referendum Signature Drive in Wakayama City

Orix Estimates US$9.5 Billion for Osaka IR

Recent Articles

Kyoto Police Arrest Online Casino Operators

Akihabara News (Tokyo) -- Kyoto Prefectural Police and other authorities announced the arrest of seven individuals last month, including 36-year-old Randall Aaron...

Japan Space Program Gets Its Groove Back

Akihabara News (Tokyo) -- After a series of embarrassing stumbles, Japan's space program is putting some wins on the board again.

Wakayama Signs Pact on Flying Cars

Akihabara News (Tokyo) — Wakayama Governor Shuhei Kishimoto made it clear at a press conference on January 30 that his administration is...

Qualified Success for Japan’s Moon Landing

Akihabara News (Tokyo) -- The Japan Aerospace Exploration Agency (JAXA) declared success in its "main mission" of conducting a Moon landing near...

Pioneering Hoverbike Firm Goes Belly Up

Akihabara News (Tokyo) — Japan's most prominent hoverbike company, A.L.I. Technologies, has filed for bankruptcy. Although the firm reports that it hopes...

Related Stories