Ed Bowers, president and CEO of MGM Japan, openly acknowledges the apprehensions surrounding the introduction of casino gambling in Japan through its first integrated resort, which carries an unprecedented price tag. "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," he stated in an interview while at MGM’s Osaka office. This venture, which represents more than a decade of planning, is being developed with a target opening by late 2030. The project is a collaboration between MGM Resorts International and Orix Group, with an estimated cost of ¥1.5 trillion (around US$9.5 billion), and will be located on Yumeshima island, which is set to host the World Expo 2025.
Local excitement is palpable as Osaka, often referred to as Japan’s second city, may take the spotlight with this major development. A subway station partially funded by MGM Osaka opened in January 2022, providing direct access for Expo visitors and future guests. In addition to this, the Kintetsu Group, one of 22 local investors owning 12% of MGM Osaka, plans to connect Yumeshima to the popular tourist area of Nara, roughly 45 kilometers to the east, through train service. Plans also include a ferry and cruise ship terminal, along with a bus depot.
MGM Osaka is currently Japan’s largest construction project, covering 49 hectares (122 acres). The site is bustling with activity as workers are seen operating heavy machinery and pouring concrete, laying approximately 3,600 support columns into the artificial island's substrate. To address potential liquefaction concerns, construction efforts are being carefully executed to stabilize the ground. The integrated resort is expected to feature 780,000 square meters (8.4 million square feet) of gaming space, according to the latest area development plan.
The most significant building on site will stand 27 stories tall and will house two hotels as well as the casino itself. In total, MGM Osaka will comprise 2,500 guest rooms, over 20% of which will be suites measuring between 105 and 150 square meters. Notably, gaming facilities will only account for 3% of the total floor area, which translates to about 23,400 square meters dedicated to gaming.
MGM Osaka will also host one of Japan’s largest MICE (meetings, incentives, conventions, exhibitions) facilities with 400,000 square feet (36,171 square meters) dedicated to conference space. Additionally, it will feature 330,000 square feet for exhibitions and a theater seating 3,500 guests. Bowers expressed confidence in the ability of MGM Osaka to attract international MICE events, citing the organization’s experience as the largest MICE operator in Las Vegas, generating an impressive demand for accommodations.
In line with the project’s tourism-focused strategy, facilities are mandated to include a tourism attraction center, which will serve as a concierge hub. This center will enable visitors to learn about Japan, purchase tickets for events, and even arrange transportation to various attractions across the nation.
MGM’s strategy aligns with Japan’s goal to enhance its tourism sector. The country recorded 42.68 million international arrivals last year and is expected to surpass 41 million this year despite global challenges affecting tourism, particularly reduced arrivals from mainland China. Japan’s tourism authorities are still aiming for 60 million visitors by 2030 while promoting strategies to balance tourist influx and manage overtourism—especially in well-known locales like Kyoto.
Bowers recognizes that adherence to Japan's tourism policies is crucial for the success of MGM, stating, "We’re honour-bound to think about how we can work with Japan to make sure that we are focused on their tourism policies. The quid pro quo is we get a casino, which is where we’ll make all our money."
For Japanese citizens, the gaming area is designed with regulations that include a ¥6,000 entry fee for locals, valid for 24 hours, and limits on the frequency of visits. Predictions for annual revenue from the integrated resort reach ¥520 billion, with gaming expected to contribute ¥420 billion (approximately US$2.65 billion).
Given its pioneering role, MGM Osaka will not only represent its own business case but will also influence how local governments, regulators, and the public perceive future integrated resort developments. Concerns remain among residents about living alongside a casino, with locals unsure of the cultural shifts it may bring.
Bowers believes that Osaka is poised to take a leading role in establishing best practices for responsible gambling, remarking, "To its huge credit, Osaka wants to lead Japan and possibly lead the world in its efforts on problem gambling. We’re going to have a strong responsible gambling programme, somewhat based on what we do in the US using a programme called Game Sense."
As Yumeshima transitions from an overlooked island to a vibrant hub of recreation and entertainment, officials hope that MGM Osaka will become a model for future developments, embracing the lessons of integrated resorts elsewhere while tailoring them to Japan's unique context.
