Osaka casino resort opening delayed to autumn 2030; initial investment increases to $8.6 billion
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In an announcement on Tuesday, the Osaka prefectural and municipal governments have confirmed a delay in the opening of themuch-anticipated first casino resort in Japan, pushing the expected launch to around autumn 2030.
Originally, when the local governments submitted their development plan to the central government in April 2022, the resort's opening was slated for the autumn or winter of 2029. The delay stems from the fact that the development plan did not secure central government approval until April of this year, The Japan Times reported.
The Osaka governments have also indicated that the initial investment required for the project will experience an increase, rising to ¥1.27 trillion ($8.6 billion at current exchange rates) from the previously planned ¥1.08 trillion ($7.3 billion), the report said. This upward revision is primarily attributed to escalating costs of construction materials.
Upon receiving central government approval for the revised plan, the Osaka government is poised to move swiftly and sign a contract with the designated operator for the casino resort, a move that may materialize as early as this month.
U.S. casino operator MGM Resorts International and local partner Orix Corp are leading the Osaka IR project, each holding a 40% stake in the company managing the complex. The remaining 20% is held by 20 other companies, with MUFG Bank and Sumitomo Mitsui Banking Corp providing 550 billion yen in project financing. The resort, located on the reclaimed island of Yumeshima in Osaka Bay, will feature a casino, hotels, a conference center, a shopping mall, a museum, and a ferry terminal
Casinos were previously illegal in Japan, but a 2018 integrated resort (IR) law allowed for the establishment of officially approved casinos offering games such as poker and baccarat. The move was part of an effort to attract tourists to the country, which boasts a population of 126 million and is in close proximity to Asia's wealthy gamblers.
