Osaka aims to open casino resort 2029

Draft district development plans for casino resorts in Osaka (pictured by an artist), given that large Japanese cities have set a target opening date for casino resorts to around fall or winter 2029, according to a document released on Tuesday.

In late July, Osaka authorities announced that the initial opening of the integrated resort (IR) would be possible as early as 2028, 2030.

A draft of the district development plan was unveiled at a joint meeting between Osaka Prefecture and Osaka City last Tuesday.

It confirmed that U.S.-based casino group MGM Resorts International and its main consortium partner, Orix Corporation, will each have a 40 percent stake in the scheme. About 20 Osaka companies, including railroad operators Kintetsu Group Holdings and Hankyu-Hanshin Holdings, will have a total stake of 20 percent.

The initial investment in the complex was set at 1.80 trillion yen, or about $9.5 billion. These investments will consist of 530 billion yen from the companies involved in the project, with MGM Resorts and Orix each investing 40 percent of that amount, while minority shareholders will split the remaining 20 percent.

According to the draft, the total investment also includes 550 billion yen in bank financing. According to the documents, the consortium received commitment letters from MUFG Bank, which is described as the largest bank in Japan, and Sumitomo Mitsui Bank for the financing.

According to the draft plan, the business license is valid for 35 years, and has the potential to be extended for another 30 years. The resort, which will be located on Yumeshima Island in the Osaka Bay, will provide employment to 15,000 people.

MGM Resorts is the majority shareholder of Macau casino operator MGM China Holdings Ltd.

The Japanese government announced on Oct. 1 the weighting it would give local authorities when they opened an application period to attract casino resorts in the country to score applicants.

Under the liberalization program, up to three resorts will be allowed nationwide in the first phase. Currently, only three communities are competing to hold large-scale IR events: Osaka, Nagasaki, and Wakayama.

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