Casino project was jointly proposed by the Osaka prefectural and city governments, and the casino city will be built on the artificial island of “Yumeshima” in Osaka Bay.
Prime Minister Fumio Kishida announced on the 14th that he has officially approved the development plan for the Osaka gambling city, marking Japan’s first government-approved casino development project. Kishida stated that the establishment of the Osaka gambling city will bring great benefits to Japan’s tourism industry. This means that Japan’s casino industry is about to enter the field of casino tourism, injecting new vitality into the country’s tourism industry.
Today (the 14th), the Japanese government approved the plan to build Japan’s first official casino in Osaka, aimed at attracting more domestic and international tourists’ consumption. This plan was jointly proposed by the Osaka prefecture and the city of Osaka, and plans to open an integrated resort (IR) in 2029, including a casino, convention center, and other facilities, with an initial investment of 1.8 trillion yen (about 13.5 billion U.S. dollars).
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In the past, both casinos and private gambling were illegal in Japan, but the 2018 Integrated Resort Promotion Law provided an exception and legal basis for government-approved casinos, including poker or baccarat, which is also part of attracting tourists. The Japanese market with a population of about 126 million is very important for casino operators because there are many wealthy gamblers. However, opinion polls show that many Japanese still express concerns about gambling addiction and crime issues.
Casino plan
MGM Resorts International and Japanese company ORIX will jointly develop the Osaka IR project, which will be Japan’s first legal casino. The IR project was jointly proposed by the Osaka prefectural and city governments, and is scheduled to open in 2029. The resort, with a total investment of up to 1.8 trillion yen (approximately $135 billion), will include a casino, a convention center, and other facilities. MGM and ORIX will each own 40% of the project’s shares, while the remaining 20% will be held by 20 Japanese companies, including Panasonic, Kansai Electric Power, and West Japan Railway.
To this end, Mitsubishi UFJ Financial Group (MUFG) and Sumitomo Mitsui Banking Corp (SMBC) will provide financing of 550 billion yen to support the implementation of the project. The entire resort is located on the artificial island of Yumeshima in Osaka Bay, with a total area of approximately 492,000 square meters, including hotels, shopping centers, and ferry terminals. In addition, the Japanese government plans to host the World Expo in Yumeshima in 2025.
The project documents show that the resort aims to generate an annual revenue of 520 billion yen, mainly from the gambling business, and is expected to attract 6 million international tourists and 14 million domestic tourists.