Prefectural Assembly Passes Osaka Casino Resort Plan

Akihabara News (Tokyo) — The Osaka Prefectural Assembly approved on March 24 the development plan for the Integrated Resort (IR) including a casino on the manmade island Yumeshima, despite lingering doubts over potential soil liquefaction and only conditional commitment by the private companies.

With the backing of the locally dominant Osaka Restoration Association led by Osaka Mayor Ichiro Matsui, the Osaka City Council is also expected to give its nod to the project on March 29.

In order to be considered for licensing, the IR proposal must be submitted to the national government before the April 28 deadline.

Development costs for the IR are expected to reach ¥1.08 trillion (US$9 billion), including ¥530 billion (US$4.4 billion) in direct investment the MGM Resorts-Orix Corporation led consortium, and the remaining ¥550 billion (US$4.6 billion) through bank loans.

This figure appears to be separate from the ¥79 billion (US$660 million) needed to strengthen and decontaminate the Yumeshima soil, which will be ponied up by Osaka taxpayers.

The passage of the IR plan through the prefectural assembly finally spurred local anti-casino groups to action, with a referendum petition now appearing imminent.

However, this grassroots reaction is likely coming much too late to impact events, and in any case it has no chance to succeed with the pro-IR Osaka Restoration Association dominating the local political offices.

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