MGM Finds Major Backing for Planned Japanese Casino
MGM Resorts International continues to progress toward its goal of opening a new casino in Japan. It announced this week that it has secured a substantial loan agreement for $3.4 billion for its Osaka integrated resort (IR), marking a significant milestone in the development of Japan's first IR project.
A rendering of how MGM Resorts International envisions its new casino resort in Osaka, Japan. (Source: MGM Resorts International)
LISTEN TO THIS ARTICLE:This financial infusion, facilitated through a loan agreement with MUFG Bank Ltd and Mitsui Banking Corporation, represents one of the largest co-financing arrangements in Japan's history. The venture, which is a collaboration between MGM and its local partner ORIX, is set to bring a new level of entertainment and economic growth to the region.
Related: Japan's Gambling Resorts PlanThe funding secured will propel the Osaka integrated resort into its next phase of development, with the project's total cost estimated to be around $8.2 billion. The resort is expected to feature Japan's first legal casino, alongside 2,500 hotel rooms spread across three hotel brands, and a vast expanse of MICE (Meetings, Incentives, Conferences, and Exhibitions) space. Additionally, the resort will include tourism facilities designed to showcase the best of Osaka and Japan, further cementing the country's status as a premier global destination.
The Osaka IR is scheduled to open its doors in 2030, aligning with Japan's central government's implementation agreement approved last year. The project's groundbreaking financial backing by MUFG Bank Ltd and Mitsui Banking Corporation underscores the banks' confidence in the venture and also highlights the growing interest and investment in Japan's burgeoning IR industry.
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Breaking Ground
Preparatory land works on the Yumeshima Island site began last December, with the concrete being poured to prevent liquefaction and ensure a solid foundation for the resort. The total cost for just the foundation work is projected to run more than JPY25.5 billion (approximately US$173 million).
These measures are anticipated to continue until after the World Expo takes place next year, but could be completed sometime in 2027 if there aren't any delays. Moreover, MGM's commitment to the region is underscored by its sponsorship of the United States Pavilion at the World Expo, which will also take place on Yumeshima.
This project is poised to become a cornerstone of Osaka's economic and touristic landscape, attracting visitors from around the world and generating substantial revenue for the region. It will not only enhance the country's appeal to international tourists but also create a multitude of job opportunities and drive significant economic activity.
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