The American group MGM Resorts International has established itself as the most represented land-based casino operator on the famous Las Vegas Strip.
Also active in Macau, it will further expand its international footprint through Japan. Indeed, on Friday, April 14, the country’s government approved its hotel-casino project in Osaka Prefecture.
The latter thus becomes the first authorized gaming establishment in the Japanese archipelago.
The Tedious Process of Legalizing Land-Based Casinos in Japan
During 2018, Japan’s ruling Liberal Democratic Party, encouraged by the late Prime Minister Shinzo Abe, decided to legalize land-based casinos in the country.
The stated objective was to boost tourism in the archipelago. Despite strong opposition from the local population, this bill was adopted at the end of December 2018.
At the time, many international operators announced their intention to apply. This was hardly surprising. Indeed, analysts believe that Japan could establish itself as one of the world’s largest casino markets, alongside Macau and Las Vegas.
However, the rule-making process in Japan was extremely tedious. In addition, a corruption scandal and the international Covid-19 coronavirus pandemic further delayed the development of Japanese casino hotels.
Yet Shinzo Abe’s successors have continued along the same path. This was confirmed on Friday, April 14, when Prime Minister Fumio Kishida’s government officially approved the project led by the MGM Resorts International group.
>>> Also read: » Japanese casinos likely to be delayed again «
An overview of Osaka’s future hotel-casino
The recently approved project is scheduled to be completed in 2029. Budgeted at around $9 billion, it is to be built on the artificial island of Yumeshima in Osaka Bay.
In reality, MGM Resorts International’s stake in the complex is only 40%. The Japanese financial services group Orix Corporation holds a similar stake.
The remaining 20% is distributed among 20 other Japan-based companies including Panasonic, Kansai Electric Power and West Japan Railway.
Inspired by the hotel-casinos that dominate the Las Vegas Strip, the Osaka project will house hotels, meeting and convention halls, shopping malls and a wide range of leisure activities.
Among them, we can obviously mention a huge casino with slot machines and tables dedicated to traditional games.
It is also known that the complex will feature a ferry terminal and helipads, a move that is expected to attract the wealthiest players from across the continent and beyond.
According to the latest estimates, the casino-hotel is expected to generate more than 520 billion yen in annual revenue, which is approximately 3.5 billion euros.
Analysts also estimate that it is expected to attract an average of up to 6 million international tourists and 14 million visitors each year.
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