Officials from Japan announced that the profits generated from the MGM Osaka—set to be the country’s first integrated casino resort—will be allocated to fund treatment programs for gambling addiction.
At a briefing last week, representatives from Osaka Prefecture and Osaka City worked to counter the criticism they received from anti-gambling groups. Activists have voiced strong concerns that the integrated resort (IR), scheduled to open its doors in 2030, would exacerbate gambling addiction issues in the region.
The critics have raised specific concerns regarding projections that anticipate up to 80% of the IR’s revenue coming from casino operations, according to a report by Goraku Sangyo.
Developers of MGM Osaka, MGM Resorts, and the Japanese conglomerate Orix, will impose a 6,000 yen ($37) entry fee on casino patrons. Officials from the prefecture indicated that a portion of this entrance fee, along with revenue from table games, will be used to allocate about 1.4 billion yen ($8.6 million) annually towards combating gambling addiction.
During a question-and-answer segment of the briefing, residents expressed additional worries about the potential for a significant earthquake affecting the region. Situated approximately 150 kilometers from the Nankai Trough—an area where the Philippine Sea Plate meets the Eurasian Plate—the area is at risk. Research from the Earthquake Research Committee suggests an 80 to 90% likelihood that the trough will experience an earthquake with a magnitude between seven and nine within the next three decades.
Critics voiced fears that such a quake could devastate the MGM Osaka, leading some attendees to urge the prefecture to reconsider the IR construction project. In response, the prefecture stated they are open to various opinions on the subject.
Comments from the audience also pointed out the absence of representatives from Orix and MGM at the briefing, with one participant labeling the prefecture’s explanations as “insufficient.” The officials reiterated that the purpose of these sessions was to create a regional consensus on the matter, and indicated that the operators would not participate in future discussions.
On projections of visitor traffic, officials stated that they expect around 50,000 customers daily, which translates to roughly 20 million visits per year. When asked how such estimates were derived, representatives explained that MGM Osaka based its calculations on a study of demographic statistics from Japan, data on foreign visitors, and comparisons with existing IRs overseas.
Construction of the IR commenced in October of the previous year, covering approximately 49.2 hectares on the artificial island of Yumeshima in Osaka Bay. The complex is planned to include three hotels, each with about 2,500 rooms, alongside an international conference center with over 6,000 seats.
Osaka officials have highlighted that casino space will make up only 3% of the entire IR site, equating to around 70,000 square meters.
MGM Resorts and Orix, along with other consortium members, are projected to invest over $9.3 billion in this initiative, which will come with a 35-year concession for the casino, potentially extendable. The company anticipates annual revenues nearing $3.2 billion, though only $617 million of this is expected to stem from non-gaming sales.
In response to recent developments, MGM Osaka warned of illegal online casino websites falsely claiming affiliation with the IR project, which has been targeting Japanese citizens. Online casinos are prohibited in Japan, with visiting such sites facing severe legal repercussions.
Last year, business leaders in Osaka touted the IR as a means to transform the city into a premier entertainment hub for international tourists. Recently, a Japanese court sentenced three employees for laundering over $26.5 million intended for online casino operators.
