Osaka Holds First Casino in Japan
The Japanese government officially approved a plan to build Japan's first integrated casino resort in the western city of Osaka, allowing the integrated casino resort, worth about $13.5 billion, to be officially opened in 2029.
Events leading to official approval:
The government on Sunday decided to approve Osaka's first IR after the pro-Casino Japan Innovation Party placed its Osaka prefectural governor and city's main office in the city.
In this regard, ORIX, MGM Resorts International, Osaka City and the prefectural government said, "We welcome the approval and will work together to develop the project."
In the past, however, the government's casino plans have been hampered by the COVID-19 pandemic and a corruption scandal in which a lawmaker who was campaigning to legalize casinos was detained in 2019. It has also pulled out of projects intended by Caesars Entertainment, Las Vegas Sands and Wynn Resorts Limited.
All this has caused only Osaka and southwestern Nagasaki Prefectures to officially submit bids by April 2022.
However, regarding the Nagasaki bid, the government also said today that "more time will be needed to review the Nagasaki plan led by Casino Austria International."
No reason was given for the decision.
Layouts of proposal IR:
The main goal of this integrated casino resort construction is to attract domestic and global tourists.
In addition, the grand casino resort will be located on Yume-Shima, a reclaimed land island in the Gulf of Osaka, which will host the 2025 World Exposition, and will consist of a conference center, a hotel, a museum, a shopping mall, and a ferry terminal. In addition, high rollers can be entered via an adjacent helicopter pad.
New law:
In 2018, an integrated resort law was implemented that allowed casino games such as baccarat or poker to be played in officially verified facilities.
The law was considered part of the government's attempt to attract tourists in Japan. However, before the law, casinos and other private gambling were illegal in Japan.
In this sense, among casino operators, Japan is a valuable market because of its wealthier population of 126 million and proximity to wealthy gamblers in Asia. However, polls show that many Japanese residents are concerned about crime and addiction to casinos and gambling.
Ownership of the new project:
As for owners, U.S.-based MGM Resorts International and local firm ORIX Corp. will be responsible for managing the new IR project, each of which will own a 40% stake in the company set up to operate the complex.
In addition, the remaining 20% will be owned by 20 other companies, according to local government documents, "MUFG Bank and Sumitomo Mitsui Bank will provide 550 billion yen in project financing to the resort."
Big economic opportunities for Japan:
Looking at the revenue, this IR's main target will be 520 billion yen a year, accounting for the majority of the gambling business.
It is expected to attract 6 million tourists worldwide and 14 million domestic tourists, according to the project document.
In this regard, Prime Minister Fumio Kishida said, "The project will contribute to economic growth in the Kansai region and Japan around Osaka after the 2025 World's Fair, which aims to rebound in tourist spending after the pandemic."
There was a disagreement:
As for the public response to the new integrated casino resort, a Mainichi newspaper survey conducted this month said: "Women and seniors were more likely to oppose it, but 45% of respondents to casinos, 38% opposed and 17% undecided."