Ed Bowers, president and CEO of MGM Japan, acknowledges the apprehensions surrounding the launch of Japan's first integrated resort, housing the largest casino in the country. "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 remarked during an interview in MGM’s Osaka office. Despite the uncertainties, there’s a sense of enthusiasm locally, as Osaka emerges from its longstanding status as Japan’s second city.
MGM Osaka has been in development for over a decade and is set to open by late 2030. This venture is a collaboration between MGM Resorts International and Japan’s Orix Group, with the integrated resort projected to cost an estimated ¥1.5 trillion (approximately US$9.5 billion). The resort is being constructed on Yumeshima island, the venue for the World Expo 2025, which has generally fostered a positive perception throughout Osaka.
The integrated resort is strategically positioned alongside a subway station partially financed by MGM Osaka; this station opened in January last year for Expo visitors. Additionally, Kintetsu Group, one of 22 local investors holding a combined 12% stake in MGM Osaka, plans to offer train services connecting Yumeshima to Nara, a well-known tourist location 45 kilometers (28 miles) to the east. Future plans also include a ferry and cruise ship terminal as well as a bus depot.
With Nobuki Watanabe at the helm as chairman and Bowers serving as CEO, MGM Osaka stands as Japan's largest active construction project. Spanning 49 hectares (122 acres), the site sees a continuous influx of construction vehicles and laborers at work, driving piles for about 3,600 support columns into the island’s soil. Bowers notes that construction efforts are focused on tackling liquefaction issues and stabilizing the ground.
As per the latest area development plan published on July 31, the integrated resort's floor space will total 780,000 square meters (8.4 million square feet).
The framework of MGM Osaka is beginning to form, with steel beams outlining the structure of its tallest building, which will rise 27 stories containing two hotels and a casino. The overall resort is designed to feature 2,500 guest rooms, with more than 20% of those being spacious suites ranging from 105 to 150 square meters.
MGM Osaka will include one of the largest MICE (meetings, incentives, conventions, exhibitions) facilities in Japan, offering 400,000 square feet (36,171 square meters) of conference area and 330,000 square feet for exhibitions, as well as a 3,500-seat theater. Bowers emphasized that delivering MICE events, particularly international ones, is a key focus: "We know how to run MICE," he stated, citing MGM's status as the largest MICE operator in Las Vegas, generating significant accommodation demand.
The integrated resort must also feature tourist facilities, albeit with less specific mandates. Bowers explained, "You must have a tourism attraction center with three functions: a concierge to provide information, a retail function for ticket sales, and a facility to arrange trips to other attractions, which is what we call a 'tourism sending facility.'" He pointed out that Japan's vision is not just about attracting international visitors but also about encouraging them to explore other parts of the country.
Japan welcomed 42.68 million international visitors last year and is projecting a continuation of strong arrival numbers despite geopolitical challenges. The Tourism Agency aims for 60 million visitors by 2030 but is adjusting its strategies to mitigate overtourism in areas like Kyoto.
"We’re honor-bound to align with Japan’s tourism policies, which are integral to our operations here," Bowers remarked, emphasizing that the casino, limited to 3% of total floor space (23,400 square meters), is a vital aspect of generating revenue, which he's confident will involve substantial purchases from local guests.
Joyful about the prospect of Japan’s first and only casino, Hogo managing partner Chris Wieners expressed how MGM’s operation could influence public opinions on future integrated resorts. Meanwhile, Osaka International Business Promotion Council planner Pham Thanh Trung noted the challenges posed by public sentiment toward the introduction of a casino, pointing out its unfamiliarity to many local residents.
"Japan is completely virgin and vulnerable to casinos. People do not know how to live with a casino in the city," Trung commented.
Bowers stressed the importance of responsible gambling initiatives, noting that Osaka aims to become a leader in addressing gambling-related issues. MGM will implement a robust program modeled after practices in the U.S., using a framework called Game Sense. The city is also developing its Osaka Addiction Centre to support these efforts.
The strategy for Yumeshima, Japan's transformative integrated resort site, draws comparisons to successful models established in Cotai, Macau, and Sentosa, Singapore, both of which saw massive developments from previously underutilized spaces into thriving entertainment hubs. Experts like Lee Kah-Wee from the National University of Singapore suggest that Yumeshima's phased development plan, with comprehensive land-use strategies, signifies a more structured approach than that seen in earlier developments in Cotai. Lee highlighted that Yumeshima's successful execution will hinge on the involvement of private capital and coordinated public planning.
