Ed Bowers, president and CEO of MGM Japan, openly discusses the apprehensions surrounding the introduction of casino gambling in Japan, particularly with the development of an integrated resort in Osaka, which carries a record 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,” Bowers stated from MGM’s Osaka office. This integrated resort, known as MGM Osaka, is set to open in late 2030 and represents more than a decade of planning. The project is a collaboration between MGM Resorts International and financial services giant Orix Group, with an estimated investment of ¥1.5 trillion (approximately US$9.5 billion) taking shape on Yumeshima island, a site also chosen for the World Expo 2025, and is generally received positively within the city.
An Osaka subway station, partially financed by MGM Osaka, opened in January last year in anticipation of Expo visitors and stands conveniently near the IR site. The Kintetsu Group’s railroad plans to offer direct train service between Yumeshima and Nara, a well-known tourist locale located 45 kilometers (28 miles) to the east. In addition, proposals for a ferry and cruise terminal and a bus depot are also underway.
The ongoing construction project, managed by Bowers and Orix’s Nobuki Watanabe, is the largest in Japan currently. Spread over 49 hectares (122 acres), the site buzzes with activity as concrete mixers and workers assemble structural elements. Around 3,600 support columns must be driven into the soil to resist liquefaction and ensure stability during construction. The integrated resort is slated to encompass 780,000 square meters (8.4 million square feet) of floor space, according to the updated area development plan released by Osaka City, Osaka Prefecture, and MGM Osaka.
Steel frameworks are visible, marking the shape of the main building that will rise 27 stories high, housing two hotels and a casino. Overall, MGM Osaka is projected to contain 2,500 rooms, with over 20% of these being suites ranging from 105 to 150 square meters, across three hotels. The casino floor will use only 3% of the total space.
MGM Osaka is also expected to feature one of Japan’s most extensive MICE (meetings, incentives, conventions, exhibitions) facilities, with over 400,000 square feet (36,171 square meters) allocated for conferences and another 330,000 square feet dedicated to exhibitions, alongside a 3,500-seat theater. Bowers expressed confidence about engaging international MICE events, citing MGM’s experience as the largest MICE operator in Las Vegas, which generates significant annual accommodation demand.
In addition to the mandated MICE facilities, the integrated resort will offer tourist attractions, including a concierge designed to help visitors navigate Japan. This will include purchasing tickets for events or experiences and providing guided assistance to various locations within Japan.
Japan recorded 42.68 million international arrivals in the previous year and aims to reach 60 million visitors by 2030, despite recent reductions in arrivals from mainland China due to geopolitical tensions. The ongoing tourism policy has adapted to manage overcrowding in popular destinations like Kyoto.
"We’re honour-bound to think about how we can work with Japan to make sure that we are focused on their tourism policies, because tourism policies are at the heart of what it is that we have to do for Japan," Bowers commented. In return for developing a casino, MGM hopes to generate significant revenue, expecting half of it to stem from Japanese customers themselves.
The gaming aspect of the integrated resort is strictly regulated with a maximum of 3% for gaming facilities, which sets MGM Osaka's area at 23,400 square meters. Japanese nationals will face a ¥6,000 entry fee, valid for 24 hours, with limits set on visits within specified timeframes.
Updated estimates put annual revenue at ¥520 billion, with gaming expected to contribute ¥420 billion (around US$2.65 billion). Bowers emphasized that, as the first and only casino in Japan, MGM Osaka's operations would influence how regulators and local authorities view future integrated resorts.
"Japan is completely virgin and vulnerable to casinos. People do not know how to live with a casino in the city," voiced Pham Thanh Trung from the Osaka International Business Promotion Council, highlighting the uncertainty that residents face. In contrast, traditional gaming avenues like pachinko already hold a significant portion of the local leisure market, with total legal bets last year amounting to ¥8,874 billion across various gaming forms.
Dominic Carter, CEO of The Carter Group, remarked on the country’s perception of gambling, emphasizing that casinos are seen with a touch of glamor and as special occasions, unlike regular gaming centers.
Bowers acknowledged Osaka's initiative to take a proactive stance on responsible gaming. He noted, "They want to be a leader in defining what responsible gambling is and dealing with problem gambling." MGM plans to implement a responsible gaming program modeled after its U.S. operations, while Osaka develops its own framework.
Bowers expressed optimism regarding the potential for Osaka to lead national standards on responsible gaming, reflecting their commitment to ensure the safety of visitors while striving for a successful integrated resort.
MGM Osaka aims to reinvent Yumeshima into a vibrant hub, following in the footsteps of successful integrated resort models like Cotai in Macao and Singapore’s Resorts World Sentosa. However, comparisons emphasize the organized planning and level of government involvement in developing Yumeshima, unlike other casino-driven developments in the region. As preparations continue, the hope remains for Yumeshima to thrive as a premier destination by 2030.
