TOKYO: Japan’s central government on Friday greenlighted a plan to build the country’s first casino in the western city of Osaka, paving the way for a 1.8 trillion yen ($13.5 billion) resort set to open in the latter half of 2029.
Located on the Yumeshima island that is due to host the World Expo in 2025, the giant resort complex will include hotels, a conference centre, shopping mall, museum and ferry terminal, while lavish spenders will have access to an adjacent helicopter pad.
Previously, casinos were illegal in Japan along with other private gambling, but an integrated resort (IR) law in 2018 provided exception to casino games like poker and baccarat at officially approved establishments in a bid to attract tourists.
Japan is considered a prized market for casino operators because of its wealthy population of 126 million and proximity to Asia’s rich gamblers, although opinion polls have shown many citizens are concerned about addiction and crime.
The Osaka IR project has been spearheaded by US casino operator MGM Resorts International and local partner Orix Corp – both of which own a 40% stake in the firm set up to manage the resort.
The remaining 20% is held by another 20 companies, as per a local government document, which said Sumitomo Mitsui Banking Corp and MUFG Bank would provide 550 billion yen for the resort.
Prime Minister Fumio Kishida said on Friday the project would assist in the economic growth of the Kansai area around Osaka and greater Japan after World Expo 2025, as the country aims for a post-pandemic rebound in tourist spending.
‘Resort to boost tourism’
The resort’s target is to generate an annual revenue of 520 billion yen, mostly from the gaming business, as it forecasts attracting 14 million domestic visitors and six million international tourists, the project document unveiled.
MGM Resorts, Orix and Osaka’s city and prefecture governments welcomed the approval and said they would work together to develop the project.
The decision by the national government came after the pro-casino Japan Innovation Party scored big wins in Sunday’s elections retaining the prefectural governor and city mayor offices in Osaka.
A recent poll by the Mainichi newspaper showed that more Osaka residents supported the casino project than opposed it, as 45% of respondents opted in favour of the casino, 38% against it and 17% remained undecided.
Japan’s casino plans were previously hampered by the Covid-19 pandemic and a bribery scandal leading to the arrest of a high-profile lawmaker. Major casino operators Caesars Entertainment Corp, Las Vegas Sands Corp and Wynn Resorts Ltd pulled out from planned projects.
