In a bold move for Japan's burgeoning gambling industry, MGM Japan's president and CEO, Ed Bowers, addresses the anxieties surrounding the introduction of casino gambling in an integrated resort that carries the highest price tag in the world.
"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 shared from MGM’s office in Osaka. The excitement in Osaka is palpable, as the city, often regarded as Japan's second city, is poised to take the lead in this venture.
After more than a decade of planning, the MGM Osaka integrated resort is targeted for completion in late 2030. Developed through a partnership between MGM Resorts International and the financial services giant Orix Group, the project is expected to cost approximately ¥1.5 trillion (around US$9.5 billion). It is strategically located on Yumeshima Island, a site that will also host Expo 2025, making the venture particularly significant for the local economy.
The development is well connected, with an Osaka subway station funded by MGM Osaka opening its doors in January last year to accommodate Expo visitors. Additionally, the Kintetsu Group, one of 22 local investors holding a total of 12% in MGM Osaka, is planning a new train line to link Yumeshima directly with Nara, a site known for its tourism appeal, 45 kilometers to the east. Plans also include a ferry and cruise terminal, along with a bus depot.
Currently, construction is ramping up on a 49-hectare site, which is quickly becoming the largest construction project in Japan. Workers are busy installing about 3,600 support columns, addressing potential liquefaction issues beneath the site to ensure stability. The area designated for the integrated resort will span a staggering 780,000 square meters (approximately 8.4 million square feet), as confirmed in an update to the area's development plan released on July 31.
The outlines of the resort's framework are already visible, including the primary building, which will eventually rise 27 stories and house two hotels and a casino. MGM Osaka will feature a total of 2,500 guest rooms, with over 20% being spacious suites ranging from 105 to 150 square meters.
In addition, the resort will boast one of Japan's largest MICE (meetings, incentives, conventions, exhibitions) facilities, offering 400,000 square feet (36,171 square meters) for conferences and 330,000 square feet for exhibitions. This substantial space also includes a theater with a capacity of 3,500.
"There’s a certain amount of overseas MICE events they want us to do," Bowers explained, expressing confidence in MGM Osaka's capabilities. The group's reputation as the largest MICE operator in Las Vegas is supported by its record of generating substantial accommodation demand and hosting a multitude of shows and events each year.
Compliance with tourism requirements is crucial for the project, which mandates facilities to assist tourists. Bowers highlighted the necessity of a tourism attraction center, which will offer concierge services, ticket purchasing options, and guidance to help tourists explore Japan.
Bowers notes that Japan aims not only to draw in visitors to Osaka but to encourage them to explore other regions, acting as a tourism multiplier in line with national policy goals. Japan saw 42.68 million international arrivals last year, with projections pointing to a continued upward trend despite challenges such as reduced arrivals from China. The government's ambition remains to reach 60 million arrivals by 2030 while managing overtourism in hotspots like Kyoto.
MGM Osaka's gaming area will occupy only 3% of the total floor space, equal to 23,400 square meters. Japanese citizens will face specific regulations, including a ¥6,000 entry fee, valid for 24 hours, and limits on the number of visits per week and month.
Projected annual revenue for the integrated resort is estimated at ¥520 billion, including ¥420 billion from gaming activity, comparable to the Venetian Macao's figures from Sands China. Bowers anticipates that approximately half of this revenue will come from Japanese patrons.
The impact of MGM Osaka extends beyond its bottom line; its operations are set to influence how the public, regulators, and governmental bodies perceive future integrated resorts in Japan. Local planners emphasize the potential benefits these resorts can bring, even as residents express concerns about the nation's initial foray into casino gaming.
As discussions about responsible gambling intensify, Bowers affirmed Osaka's commitment to effective gambling practices. He stated, "To its huge credit, Osaka wants to lead Japan and possibly the world in its efforts on problem gambling. They want to be a leader in defining what responsible gambling is and addressing problem gambling."
MGM intends to establish strong responsible gaming initiatives, borrowing strategies from its successful U.S. practices while collaborating with governmental bodies developing local support systems.
The transformation of Yumeshima, riding the wave of integrated resort developments seen in regions like Cotai and Singapore, places Osaka in a pivotal position. Unlike Cotai's historic development driven by private enterprises with little official planning, Yumeshima benefits from a clear government strategy that includes comprehensive urban planning and infrastructure connections.
As Osaka prepares to take its place in the international landscape of integrated resorts, the success or challenges faced by MGM Osaka will likely impact its global image and set a template for future projects across Japan.
