Ed Bowers, president and CEO of MGM Japan, expressed the challenges ahead as the country prepares to introduce casino gaming through its first integrated resort, MGM Osaka. In an interview at MGM's office in Osaka, Bowers acknowledged the nervousness surrounding the project, stating, "There’s a lot of trepidation about being the first to have this very large casino in Japan, and the issues it could bring, and we understand all of this." However, he also noted the excitement within Osaka, which has historically been viewed as Japan’s second city but is poised for a notable first with this venture.
MGM Osaka, a major undertaking nearly a decade in the making, expects to open in late 2030. The venture is a collaboration between MGM Resorts International and Orix Group and comes with an estimated price tag of ¥1.5 trillion (approximately US$9.5 billion). The integrated resort is located on Yumeshima island, which will host World Expo 2025, and has received generally favorable reviews locally.
The development includes infrastructure improvements, such as an Osaka subway station that MGM partially funded, which opened in January 2022 for Expo visitors. The Kintetsu Group, which is one of 22 local investors with a 12% stake in MGM Osaka, is also planning a train line from Yumeshima to Nara, a popular tourist area.
As the largest current construction project in Japan, MGM Osaka occupies a 49-hectare (122-acre) site where construction is active. Bowers noted the ongoing efforts to ensure the foundation remains stable, as they insert some 3,600 support columns into the ground amidst continual concrete work.
According to a July 31 update from Osaka City and Osaka Prefecture, the integrated resort will have a total floor space of 780,000 square meters (8.4 million square feet). The tallest structure within MGM Osaka will rise 27 stories, housing two hotels and the casino, with a total of 2,500 guest rooms, including over 20% dedicated to suites ranging from 105 to 150 square meters.
MGM Osaka is set to feature one of Japan’s largest MICE (meetings, incentives, conventions, exhibitions) facilities, boasting 400,000 square feet (36,171 square meters) of conference space and a theatre with 3,500 seats. Bowers emphasized their capability of managing MICE events, referencing MGM's successful history in Las Vegas, where they operate as a leading MICE entity, providing 2.5 million room accommodations annually and hosting over 9,000 events.
Mandatory tourist facilities will be included, focusing on three main functions: offering travel guidance about Japan, enabling ticket sales for events and attractions, and arranging transportation for visitors. Bowers explained the goal is not just to attract tourists to Osaka but also to facilitate journeys to other destinations across Japan.
Last year, Japan recorded 42.68 million international arrivals and is on track to achieve similar numbers this year, despite a significant decrease in visitors from mainland China. Japan’s target is to reach 60 million arrivals by 2030; however, adjustments have been made to manage overcrowding in popular areas like Kyoto, located 63 kilometers from Yumeshima.
Bowers insists that aligning with Japan's tourism policies is crucial, stating, "We’re honour-bound to think about how we can work with Japan to make sure that we are focused on their tourism policies, because tourism policies are at the heart of what it is that we have to do for Japan." He summarized the partnership as a quid pro quo: MGM develops a casino while adhering to national tourism objectives.
Under Japan’s new regulations, gaming facilities will represent only 3% of the total development area, allowing for 23,400 square meters for MGM Osaka's casino. Additionally, Japanese nationals will pay a ¥6,000 entry fee valid for 24 hours and are limited to three visits in one week.
According to the most recent development plans, annual revenue is projected at ¥520 billion, with gaming revenue estimated at ¥420 billion (US$2.65 billion). Bowers anticipates that approximately half of this revenue will come from Japanese patrons.
Observers note that how MGM Osaka operates will significantly influence the public and regulatory perception of future integrated resorts in Japan. Concerns still linger among residents about hosting the country's first casino, as emphasized by local business planner Pham Thanh Trung.
He noted, "Japan is completely virgin and vulnerable to casinos. People do not know how to live with a casino in the city."
Despite not having traditional casinos, Japan has a vibrant gaming culture driven by pachinko and betting on races. Last year, legal gaming activity amounted to ¥8,874 billion across all forms, including horse racing, which accounted for about 20% of the global total. With a distinct cultural attitude toward gambling, findings suggested that public perception views casinos differently, with casinos associated more with glamour compared to the down-market image of pachinko.
As the groundwork for MGM Osaka progresses, Bowers highlighted the collaborative commitment to responsible gambling in Osaka, where local government aims to lead in establishing best practices. “To its huge credit, Osaka wants to lead Japan and possibly lead the world in its efforts on problem gambling,” he stated. Bowers emphasized their forthcoming responsible gaming program, which takes cues from successful practices in the U.S.
Looking ahead, he believes that Osaka's initial approach to responsible gambling will set a standard for the rest of Japan. With Yumeshima poised to host Japan’s first integrated resort, comparisons with other international sites are bound to unfold, particularly as the region strives to establish itself as a premier destination in the integrated resort industry.
