MGM Resorts International and Orix Corporation have broken ground on the manmade island of Yumeshima. It is Japan’s first casino, and it is expected to boost tourism once its doors open at some point in 2030.
Dream Becomes Reality
The topic of bringing a betting location like a casino to Japan has been kicking around for 20 years; therefore, when ground was broken last week on the $8.9 billion gambling palace, it was the manifestation of years of planning, lobbying, and patience.
MGM Resorts International has joined forces with a Japanese financial services company called Orix Corporation to bring the nation’s first casino resort to fruition. It is expected to take five years and nearly $9 billion before the public gets to enjoy the glamorous integrated gaming resort.
“I’ve been working on this for more than 15 years, and no one is happier than I am to see this happen,” said Ed Bowers, the chief executive officer of MGM Resorts Japan. “It’s not been an easy road, and we will continue to see challenges until and after this opens.”
Details of the Resort
The resort has been named MGM Osaka, and it is located on the artificial island of Yumeshima in Osaka Bay. When construction is finished, it will feature three hotels with approximately 2,500 rooms, 330,000 square feet of exhibition area, and 400,000 square feet of conference centers. Entertainment venues will also be available, coupled with a 3,500-seat theater, along with dozens of dining options and retail shops.
According to zoning laws, the casino footprint can occupy no more than 3% of the total square footage of the project, but it is expected to house over 2,000 slot machines and 200 table games.
“In collaboration with Osaka Prefecture and Osaka City, this project… is expected to contribute to the development of Japan’s tourism industry and the growth of the Kansai region,” a press statement reads.
Entrance Fees to Curb Local Gambling
Those living in Japan will have to pay a $21 entrance fee, while residents of Osaka will be charged $42. These charges are a deliberate way of curbing attendance by the locals and are designed to mitigate gambling problems among Japan’s residents.
Challenges Ahead
Industry analysts have cautioned that there are several hurdles ahead that could delay the eventual opening of Japan’s first resort casino. Between a rapidly increasing retirement age boom, a declining birth rate, and a low immigration rate, Japan’s workforce has been shrinking, and getting enough people to build and ultimately staff a project of these enormous proportions could become an issue.
There is also significant competition from other Asian markets, including the Chinese enclave of Macau, while the possible legalization of online gambling is a concern. Moreover, a lawsuit by local community groups and residents has also been filed, but that doesn’t appear to be gaining much traction and appears to be serving only as a pesky distraction.
But the risk is well worth the reward, should it be successful, as estimates are that the casino will generate $5.9 billion annually in gross gaming revenue.
“There’s very little doubt that it will go ahead. There’s a license,” said Daniel Cheng, a former Hard Rock executive, via a Bloomberg report. “But whether it meets the target opening of fall 2030—that’s not so certain because nobody’s built something like this in Japan before.”
