MGM Resorts Casino to Be Constructed and Launched in Japan for $9 Billion
A new MGM Resorts (NYSE: MGM) casino could be coming to Japan, following the announcement by the company and its partner Orix Corp (TYO: 8591) on Wednesday. In a filing with the U.S. Securities and Exchange Commission, Orix stated that the proposal is for a casino complex to be built in Osaka. This will be reviewed by the necessary regulatory authorities, and an operator for such would be chosen at a later date.
It was last year that a consortium comprising MGM and Orix was announced as the sole qualified applicant for developing the Osaka resort. As a result, MGM Resorts International is in line to spend 1 trillion Japanese yen (about $9.08 billion) to construct the resort in Osaka.
Japan legalized gambling back in 2018, and since then, operators have been seeking out opportunities of entering the market. However, that process has moved fairly slowly due to various issues. It is this that has led to some companies even dropping out of the bidding war.
It is Osaka that has been one of the most prominent when it comes to pushing casino plans. As the second-most-populous area in Japan, the city has offered its Yumeshima island as a casino resort. The island, which is a man-made area in Osaka Bay, also goes by the name of “dream island”.
However, Osaka could just be the first of many locations to introduce legal gambling options as Japan looks to boost tourism following the Tokyo Olympics. As a result, several integrated resorts are expected to be approved for the country, which include casinos, shopping arcades, and conference centers. This would mimic how things operate at many Las Vegas resorts.
The consortium’s plans have not yet been given permission to proceed by the Osaka government, but the proposal has been hailed by the state governor, Hirofumi Yoshimura.
“I would like to invite the world’s best-integrated resort to Yumeshima, where many people in Japan and abroad can come and enjoy Osaka after the pandemic is over”, he said.
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