Ed Bowers, president and CEO of MGM Japan, acknowledges the hesitation surrounding the introduction of casino gambling in Japan, which is set to host the world's most expensive integrated resort. "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," Bowers stated during an interview in MGM's Osaka office. However, there is considerable anticipation in Osaka, which often plays second fiddle to Tokyo, as the city prepares to take on a leading role in the integrated resort sector.
MGM Osaka, which has been in the works for over ten years, is on track for a grand opening in late 2030. The project is a collaboration between MGM Resorts International and Orix Group, a major Japanese financial services company, with projected costs reaching approximately ¥1.5 trillion (around US$9.5 billion). The resort is being constructed on Yumeshima island, a location that will also host the World Expo 2025, a development welcomed by the local community.
Connectivity boosts the site’s appeal. A subway station funded in part by MGM Oslo opened in January 2022, serving visitors to the Expo. Additional plans include a direct train service by Kintetsu Group, one of the 22 local investors holding a combined 12% stake in MGM Osaka, which will connect Yumeshima to Nara, a notable tourist hotspot. Future developments also feature a ferry terminal, cruise ship docking facilities, and a bus depot.
Currently, MGM Osaka stands out as the largest ongoing construction project in Japan. Occupying 49 hectares (122 acres), the site is bustling with activity, as crews drive approximately 3,600 support columns into the island’s soil to counter issues like liquefaction. As for the IR itself, a recent area development plan update revealed it will encompass 780,000 square meters (8.4 million square feet) of floor space.
The architectural framework of MGM Osaka is already taking shape, with steel beams indicating the outline of its tallest building, which will feature two hotels and a casino spanning 27 stories. When completed, the resort will include 2,500 guest rooms, with over 20% being spacious suites measuring 105-150 square meters.
MGM Osaka is set to host one of Japan’s largest MICE (meetings, incentives, conventions, exhibitions) venues, with 400,000 square feet (36,171 square meters) dedicated to conference uses and 330,000 square feet earmarked for exhibitions, in addition to a 3,500-seat theater. Bowers expressed confidence in MGM’s capacity to fulfill the MICE demand, citing their extensive experience as the largest MICE operator in Las Vegas.
In terms of tourism, MGM Osaka is required to provide a tourist facilities center, offering concierge services, ticket sales, and trip arrangements. Bowers emphasized the significance of this facility: "In essence, it embodies the core of Japan's integrated resort precept. Japan aims not just to attract visitors to the resort but also to encourage them to explore other areas of the nation." Japan welcomed 42.68 million international guests last year, which could rise despite global uncertainties, with ambitions to reach 60 million by 2030, focusing on upscale visitors to alleviate overtourism in locales such as Kyoto.
In discussion of the casino’s operations, gaming will be confined to 3% of the overall floor area, equating to 23,400 square meters. Japanese nationals will incur a ¥6,000 entry fee, with a cap on visit frequency, thus distinguishing the casino environment from other gaming activities culturally present in Japan, such as pachinko.
Recent estimates from the area development plan suggested an annual revenue of ¥520 billion for the integrated resort, with gaming projected to generate ¥420 billion (US$2.65 billion), closely aligning with the revenue figures seen at casino properties like Sands China’s Venetian Macao.
Bowers notes that the success of MGM Osaka extends beyond its financial viability; it sets a precedent for future integrated resorts in Japan, given the backdrop of public perception and regulatory scrutiny regarding the gaming environment. Local experts have expressed concerns about how the introduction of the first casino will be embraced by the community.
Osaka is positioning itself to take the lead in responsible gambling efforts across Japan. Bowers highlighted that Osaka has a strong intent to develop a comprehensive framework for responsible gambling, which MGM will support by implementing its Game Sense program. “Osaka aims to take their obligations seriously, ensuring a balance of economic benefits from gaming while prioritizing community safety and responsible gaming strategies,” he remarked.
With Yumeshima set to foster a blend of resort activity and urban development, the authorities are focused on a tightly managed growth plan, distinct from larger, more chaotic developments seen in places like Cotai and Singapore’s Sentosa. As the launch of Japan's first integrated resort approaches, there’s hope that Yumeshima will capture the same level of success and reverence as its predecessors.
