Japanese officials have announced plans to utilize profits from MGM Osaka, the country’s first integrated casino-resort, to fund programs aimed at treating gambling addiction.
During a briefing last week, officials from Osaka Prefecture collaborated with their counterparts from Osaka City to respond to criticisms from anti-gambling activists. These advocates argue that the integrated resort (IR), set to open in 2030, could increase instances of gambling addiction in the region. Concerns have been raised regarding reports that the resort may derive up to 80% of its revenue from casino operations, as noted by the Japanese media outlet Goraku Sangyo.
Constructed by MGM Resorts and Orix, the developers will impose a 6,000 yen ($37) entry fee for Japanese patrons. Prefectural authorities indicated that a portion of this fee, along with table game revenues, would be earmarked to allocate roughly 1.4 billion yen ($8.6 million) annually toward combating gambling addiction.
In addition to addiction treatment funding, residents at the meeting expressed their worries about the risk of a significant earthquake occurring in the area. Osaka is situated about 150km from the Nankai Trough, a seismic zone where the Philippine Sea Plate meets the Eurasian Plate. The Earthquake Research Committee has projected an 80 to 90% likelihood of an earthquake registering between seven and nine in magnitude in the next three decades. Critics have voiced concerns that a quake could jeopardize the safety of the MGM Osaka facility, with one audience member urging the prefecture to halt the construction project. The prefectural administration replied that it is considering diverse opinions regarding the IR.
Another attendee criticized the absence of officials from Orix and MGM in these discussions, labeling the prefecture's responses as lacking. The prefecture reiterated that the purpose of these sessions is to foster regional consensus and affirmed that operators will not be participating in future meetings.
Questioning surrounding anticipated visitor numbers also arose at the session. Officials from MGM Osaka and the prefecture estimated that about 50,000 visitors would frequent the IR daily, totaling roughly 20 million annually. When asked how these numbers were calculated, officials clarified that MGM Osaka derived their estimate by analyzing Japanese demographic data, statistics on foreign tourists, and existing IR facilities internationally.
Construction of the IR began in October last year and is being developed on approximately 49.2 hectares of land on Yumeshima, an artificial island within Osaka Bay. Plans for the IR include three hotels featuring around 2,500 rooms each, as well as an international conference center accommodating over 6,000 attendees. Officials disclosed that the casino's footprint would be restricted to 3% of the entire IR site, which translates to roughly 70,000 square meters.
MGM Resorts, Orix, and partners expect to spend upwards of $9.3 billion in total investment. The project will be supported by a 35-year, renewable concession granted by Osaka, with MGM Osaka projecting annual revenues of about $3.2 billion, though only $617 million of that is expected to result from non-gaming activities.
Last month, officials from MGM Osaka alerted the public about numerous illegal online casino websites falsely claiming association with the IR, targeting Japanese users. It’s important to note that online casinos are illegal in Japan, and even attempting to access overseas casino sites could result in criminal penalties.
Business leaders in Osaka have promoted the IR project as a means to transform the city into a premier entertainment hub for international visitors. Recently, a Japanese court sentenced three company employees to prison for laundering over $26.5 million through business accounts for online gambling operations.
