Dive Brief:

• Japan has approved a plan proposed by MGM to build the country's first casino in Osaka — an $8.1 billion resort (1.08 trillion yen) that’s set to open in 2029, according to MGM.
• MGM Resorts International and local partner Orix Corporation head up the Osaka project, with each owning a 40% stake.
• Casino operators like MGM are aiming to tap into Japan’s affluent population as well as other gamblers in Asia. The country also hopes the casino will attract more domestic and international travelers as part of its pandemic recovery.

Dive Insight:

MGM Resorts is betting big on its latest development project: a multibillion-dollar casino complex in Japan. According to the hospitality company, Japan's Ministry of Land, Infrastructure, Transport and Tourism has approved the proposal, in which MGM had initially pledged to spend up to $10 billion on the project based on previous exchange rates.

The integrated resort is expected to be one of the most expensive casino resorts ever built. Located on Yumeshima, a man-made island in Osaka Bay, the complex will include hotels, a conference center, a shopping mall, a museum and a ferry terminal.

Casinos used to be illegal in Japan, but a law passed in 2018 offers an exception for casino games, such as poker or baccarat, that operate at officially approved establishments. Following that, global gaming giants like Las Vegas Sands and Wynn Resorts also proposed development plans but eventually withdrew due to the slow-moving approval process, which was hindered even more by the pandemic.

MGM’s proposed development aims to transform the region into “one of the world's top entertainment and hospitality destinations and to serve as a hub for tourism across Japan,” according to a release. The company already operates two integrated resorts in Macau. The casino in Japan would expand the hospitality company’s international presence.

With the goal of attracting more tourists, both international and domestic, the Japanese government views the casino project as a means to economic growth as the country continues to recover from the pandemic. Gaming analyst John DeCree of CBRE Equity Research told Casino.org that MGM Osaka’s casino floor could generate $3.2 billion in gross gaming revenue annually.

In addition to MGM and Orix Corporation, the remaining 20% ownership stake is spread among 20 other Japanese-based entities, including Panasonic, Kansai Electric Power and West Japan Railway.