MGM Resorts Confident in Osaka Casino Future

MGM Resorts International is optimistic about the timely construction of its integrated resort, MGM Osaka, which will feature a hotel and casino. The American gaming giant has already committed $8.89 billion to the project.

Notably, the deadline for MGM to withdraw its investment has already passed. Should the company choose to pull out now, it risks incurring significant penalties and possibly the termination of its contract. However, MGM President and CEO Bill Hornbuckle affirmed that the company is committed to its Osaka venture. "We aim to commence construction by May or June of next year, with an anticipated opening in mid-2030," he stated.

MGM Osaka will be situated on Yumeshima, an artificial island in Osaka Bay. This integrated resort will host Japan's first casino, alongside a hotel containing 2,500 rooms, a conference centre, a shopping mall, and various other amenities. The resort is projected to generate ¥520 billion in annual gross revenue, with approximately 80% stemming from gambling activities.

In 2018, Japan enacted legislation to enhance its infrastructure, leading industry analysts to identify the country as a potential “holy grail” for gambling, with projected gross revenues reaching up to $40 billion annually. Consequently, major global operators such as Wynn Resorts, Las Vegas Sands, and Caesars Entertainment vied for licences.

However, the onset of the pandemic dampened interest in the project, ultimately resulting in only two operators applying for licences: MGM in Osaka and Casino Austria in Nagasaki. MGM, partnered with the financial services firm Orix Corporation, was the sole operator to receive approval to move forward.