MGM Confirms Full Participation in Japan IR
LISTEN TO THIS ARTICLE:If there were concerns that MGM Resorts International might pull out of a planned integrated resort in Osaka, Japan, the casino operator's CEO has dismissed them. Later this month, Bill Hornbuckle, the CEO of MGM Resorts, plans to travel to Japan for the purpose of finalizing two significant development agreements associated with MGM's ambitious $9.3-billion hotel complex endeavor in Osaka.
MGM All In on Osaka IR
MGM has entered into a collaborative partnership with Orix Corporation, a prominent Japanese financial conglomerate, to introduce Japan to its inaugural casino experience. The occasion arrived in April 2022, as the company was granted the prestigious distinction of receiving Japan's primary casino license.
Related: Integrated Resort in Osaka, Japan Faces New DelaysThis milestone was attained upon the successful presentation of an all-encompassing blueprint by MGM, outlining their integrated vision for the enchanting Yumeshima – an artificial island situated in the captivating Osaka Bay. Both MGM and Orix will exercise joint control over 42 units of this remarkable endeavor. Other sponsors, such as Panasonic, Kansai Electric, and West Japan Railway, own the remaining 15% of the destination, whereas 5% is under separate ownership.
Hornbuckle is making plans for his imminent journey to Japan, where he intends to officially seal the deal on the final two development agreements relating to the project. The first agreement pertains to the leasing of the property, while the second agreement, known as the implementation agreement, is expected to kickstart the commencement of work within the complex.
When discussing MGM Osaka, MGM executives frequently refer to it as a colossal undertaking worth $10 billion, a sum that may prove viable if the yen rebounds.
UAE on the Horizon
Hornbuckle, in a conversation with the investment program, indicated the company's confidence in obtaining a license to run a property within the United Arab Emirates (UAE). He explained that the company's conviction persists in moving forward with the project and evolution in Dubai, extending its endeavors and encompassing a diverse array of fields that, hopefully, comprise gaming, as well.
During the Bank of America Gaming and Lodging 2023 Conference on Thursday, Hornbuckle was candid and confessed that his knowledge of the precise time is limited. He was unable to provide a definite answer as to when an MGM project may emerge.
The CEO expressed optimistic views about Dubai, stating that there lies an enticing market potential exceeding $3 billion. However, precise details regarding the specific area of this figure were not explicitly mentioned. Jumeirah, a land reclaimed from the sea, houses the Burj Al Arab building and acts as the backdrop for the Porto Island project.
The establishment of the General Commercial Gaming Regulatory Authority (GCGRA) in the UAE was recently addressed by Hornbuckle, as well. He emphasized the significance of this development and made reference to its notable past. Heading this organization is Jim Murren, the former president and CEO of MGM Resorts.
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