MGM Japan president and CEO Ed Bowers openly acknowledges the apprehension surrounding the introduction of casino gambling in Japan, particularly given the integrated resort's substantial investment. Speaking from MGM's Osaka office, he remarks, "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." Despite these concerns, there's palpable excitement in Osaka, which looks to finally take the lead in something significant following its longstanding status as Japan’s second city.
MGM Osaka, a collaboration between MGM Resorts International and Orix Group, has been a project in the making for over a decade and is set to open in late 2030. Its expected cost is a staggering ¥1.5 trillion (approximately US$9.5 billion) and the resort is being constructed on Yumeshima Island, which is also the site for World Expo 2025. The project is generally viewed favorably throughout Osaka.
Accessibility is a priority for the project. An Osaka subway station, partially financed by MGM Osaka, opened in January 2022 for Expo attendees and is located right at the entrance of the integrated resort site. Kintetsu Group, which is among the 22 local investors holding a 12% stake in MGM Osaka, plans to provide train services that will connect Yumeshima directly to Nara, a popular tourist spot located 45 kilometers (about 28 miles) east of Osaka. Additionally, plans for a ferry terminal, cruise ship port, and bus depot are underway.
As Japan’s most substantial construction initiative currently, MGM Osaka spans 49 hectares (122 acres). The site is buzzing with activity, with concrete mixers and workers busy as construction progresses, including the installation of approximately 3,600 support columns to prevent ground liquefaction. According to the latest area development plan update from July 31, total integrated resort space will amount to 780,000 square meters (8.4 million square feet).
The rise of MGM Osaka is marked by steel structures outlining its largest building, which will ultimately feature 27 stories, housing two hotels and the casino. The resort is projected to include 2,500 guest rooms, with over 20% designed as suites measuring between 105 and 150 square meters, all contained within three hotel facilities. Notably, the casino itself will only occupy 3% of the total floor area.
The integrated resort is set to include one of Japan's largest MICE (meetings, incentives, conventions, exhibitions) spaces, featuring 400,000 square feet (36,171 square meters) dedicated to conference areas and 330,000 square feet for exhibitions, alongside a 3,500-seat theater. Bowers expresses confidence in the MICE capabilities of MGM Osaka, stating, "We know how to run MICE.” The resort is noted as "the largest MICE operator in Las Vegas, generating annual accommodation demand for 2.5 million rooms across over 9,000 events and shows each year."
The project will also incorporate tourist facilities, albeit with less rigid specifications than MICE components. Bowers describes the tourism center as comprising three main functions: a concierge service to provide information on Japan, a ticket purchasing option for events, and the ability to assist with transportation to other tourist sites. He adds, "If you think about Singapore, Singapore said we want you to create this great facility that’s going to attract people to Singapore, period. What Japan said is that we want you to attract people to Japan, but then we want you to send people to other parts of Japan as well."
Last year, Japan recorded 42.68 million international arrivals and is on track to exceed 41 million in 2023 despite reduced numbers from mainland China, which saw arrivals drop by 56.7% through August. The Japanese tourism policy still aims for 60 million annual arrivals by 2030, although it has adjusted strategies this year to mitigate overtourism in areas like Kyoto, located 63 kilometers northeast of Yumeshima, while attracting higher-caliber visitors.
Bowers emphasizes their responsibility to collaborate with Japan on tourism initiatives, asserting, "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."
In terms of gambling regulations, gaming operations must conform to a cap of 3% of the total resort area, translating to 23,400 square meters for MGM Osaka. Japanese nationals will incur a ¥6,000 entry fee for 24 hours, with restrictions limiting visits to three times a week and a total of ten visits in 28 days. Updated area development estimates anticipate annual revenue for the integrated resort reaching ¥520 billion, with gaming revenue projected at ¥420 billion (approximately US$2.65 billion). Bowers forecasts that about half of this revenue will come from Japanese customers.
Chris Wieners, a managing partner at Hogo, remarks that the success of MGM Osaka extends beyond its business case, noting, "How it operates will shape how regulators, local governments, and the public view any future IR.” Additionally, Pham Thanh Trung from the Osaka International Business Promotion Council highlights the need for a thoughtful approach to the introduction of casinos in Japan. Given Japan's limited experience with gambling facilities, he expresses concern over uncertainties surrounding the public’s reception.
As a long-time Osaka resident, Trung articulates, “Japan is completely virgin and vulnerable to casinos. People do not know how to live with a casino in the city.” Although casinos are new to Japan, Wieners points out that a significant gaming culture already exists through venues like pachinko and other amusement games, which accounted for ¥8,874 billion in legal betting last year.
Dominic Carter, CEO of the Carter Group, recalls findings from 2019 indicating that casinos are perceived differently than more common forms of gaming, stating, “The casino itself was not really seen as ‘gambling’ in the way Japanese think of pachinko.” He notes this distinction could influence customer behavior and frequency of visits.
On the topic of responsible gaming, Bowers mentions Osaka's commitment to being a model for addressing gambling issues, stating, “To its huge credit, Osaka wants to lead Japan and possibly lead the world in its efforts on problem gambling.” Plans include a responsible gambling program modeled after existing US strategies, and Osaka is developing the Osaka Addiction Centre to work closely with the government on these initiatives.
As the first integrated resort to rise in Japan, MGM Osaka is poised to not only offer entertainment but also a framework for responsible gaming practices that could set a precedent for the nation as a whole, with Bowers suggesting that, in five to ten years, the rest of Japan may look toward Osaka for guidance in this area.
