The Osaka prefectural government published an updated development plan for its integrated resort (IR) with casino, raising the project's total investment to JPY1.51 trillion, or US$10.24 billion at current rates, up from a previous estimate of JPY1.27 trillion1. The MGM Osaka complex is being developed at Yumeshima, an artificial island in Osaka Bay, by a consortium led by MGM Resorts International and Japan's Orix Corp, with other Japanese businesses as minority investors1.
Construction costs are now expected to reach nearly JPY1.04 trillion, up from a previous forecast of about JPY722 billion, which the revised document attributed to an increase in the price of construction materials and labor1. MGM Resorts' equity commitment for the project has increased to JPY428 billion from a prior JPY306-billion pledge, lifting its stake to 44 percent from 41 percent1. Orix's stake also rose to 44 percent from 41 percent, corresponding to its revised JPY428-billion commitment1.
The floor area of the gaming venue open to the public is now expected to stand at 23,293 square meters (250,724 square feet), from 23,115 square meters previously1. The property is expected to feature 1,829 hotel rooms and 10 villas1.
In late April, Jonathan Halkyard, MGM Resorts' chief financial officer, flagged the higher equity commitment for MGM Osaka1. He said the consortium had available a JPY530-billion credit facility for the Osaka project, and that the bank facility would "kick in … in 2028 and carry the funding through to the opening in 2030"1.
"We have the financing in place for Japan and, as of the last quarter, it is JPY380 billion, and spot at the time had us at US$2.6 billion"
Rogers also said the casino group would invest "about US$300 million" this year in the construction of MGM Osaka, and "around US$500 million to US$600 million" in the following years1.
| Item | Previous | Revised |
|---|---|---|
| Total investment | JPY1.27 trillion | JPY1.51 trillion (US$10.24 billion) |
| Construction costs | About JPY722 billion | Nearly JPY1.04 trillion |
| MGM equity commitment | JPY306 billion | JPY428 billion |
| MGM stake | 41 percent | 44 percent |
| Orix stake | 41 percent | 44 percent |
| Public gaming floor area | 23,115 sq. meters | 23,293 sq. meters |
What it means for players
MGM Osaka is described as Japan's first casino resort, so the revised plan is the clearest signal yet of the scale of the property that will eventually take Japanese casino customers1. The public gaming floor area has been revised only slightly upward, to 23,293 square meters, and the plan lists 1,829 hotel rooms and 10 villas1. The rules on who may enter, what they may play and how the casino operates are not set out in the revised plan as reported, and have not been reported here. For background on access and entry rules at Asian IRs, see Casinos and Integrated Resorts in Asia: Who Can Enter, What You Can Play and the Rules Inside, and for the current legal position on gambling in the country, see Can I Gamble in Japan?.
What happens next
A ground-breaking ceremony for MGM Osaka was held in April this year1. Construction of the complex is expected to be completed in the summer of 2030, with the opening scheduled for around autumn of that same year1. The JPY530-billion credit facility is expected to kick in in 2028 and carry the funding through to the opening in 20301. Further details on the project timeline are set out in When Will the Osaka Casino Resort Open?.
