Osaka IR opening pushed back about one year to around autumn 2030

Osaka Prefecture and the City of Osaka published a draft implementation agreement for the Osaka integrated resort (IR) on September 5, 2023, setting out the concrete plan for the project's opening¹. The opening date moves from the originally planned "autumn to winter 2029" to "around autumn 2030," a revision of about one year¹. The main cause given is the prolonged national review and delayed certification under the IR Development Act¹.

• The draft agreement was published on September 5, 2023¹
• The opening date moves from "autumn to winter 2029" to "around autumn 2030"¹
• The delay is attributed to prolonged national review and delayed certification under the IR Development Act¹

The funding plan is about 550 billion yen in borrowing and about 720 billion yen in equity: MGM about 306 billion yen, Orix about 306 billion yen, and minority shareholders about 106 billion yen in total¹. The two core shareholders, MGM and Orix, decided to make additional investments of about 95 billion yen each to cover the shortfall¹.

The draft agreement also covers the operating structure, conditions for contract cancellation and measures for breach of the agreement². The application to the national government has been agreed². The prefecture and city plan to apply to the government, and if it passes review, the prefecture and Osaka IR Corporation (the SPC) aim to sign a formal agreement by the end of September¹. The SPC separately signs a land leasehold contract with Osaka City¹.

The SPC judged that the business preconditions were not met as of the judgment date and that it is not in a position to make a final decision on proceeding¹. A cancellation right was set for the SPC, exercisable until the end of September 2026¹. The stated preconditions include tax treatment and Casino Management Committee rules ensuring international competitiveness and standards; financing, meaning a loan agreement and reasonable prospect of drawdown; development, meaning appropriate city measures on land and soil; and COVID-19, meaning a prospect of tourism demand recovery¹.

Revised schedule¹:

What it means for players

The Osaka resort, which would be Japan's first casino-containing IR, will not open before around autumn 2030 on the current plan, roughly a year later than first announced¹. Until then, casino gambling in Japan remains unavailable at an IR, and the rules on who may enter, what they may play and the charges inside have not been reported as finalized. The draft agreement sets out operating and cancellation terms but does not change the legal position for players in the meantime¹. The SPC's cancellation right, exercisable until the end of September 2026, means the project could still be called off before construction is complete¹.

What happens next

The prefecture and city apply to the national government for the agreement, and if approved, the prefecture and Osaka IR Corporation aim to sign it by the end of September 2023¹. Liquefaction countermeasure work is scheduled to start around autumn 2023, IR preparatory work around summer 2024, and construction around spring 2025, with completion around summer 2030¹. The SPC's cancellation right runs to the end of September 2026¹.