MGM Resorts Secures Osaka Casino Rights $9B Project Moves Forward
According to Japan News Nikkei, the Osaka Prefecture IR Selection Committee this week approved the MGM-Orix casino tour model.
The consortium announced in July that its IR plan was a JPY1 trillion (USD $ 9.1 billion) target for the island of Yumeshima. The artificial island is where most of the Expo 2025 world fair will be held in 2025.
Osaka’s preference for MGM and Orix is not surprising. The proposal was for Osaka’s only qualifying award, and the Las Vegas international casino operator is one of the world’s most respected gaming firms.
Orix is a leading Japanese financial services company. The group is based in Minato, Tokyo, and Osaka.
Odds have favored the MGM License
MGM’s resorts have spent a short time announcing their intentions to bid on Japan’s upcoming casino market after the country officially approved commercial gambling in July 2018.
Three years ago, Japan was the attention of the world’s largest casino operators. Along with MGM, key firms that were expected to bid include Las Vegas Sands, Cesars Entertainment, and Wynn Resorts.
Japan’s tight legal system and the regulation of gambling regulations led to a great loss of that enthusiasm.
Today, MGM is the only internationally recognized IR casino unit in Japan. Clairvest Group and Austrian Casinos – the appropriate IR development partners in Wakayama and Nagasaki – certainly do not have the same appreciation and product awareness about MGM Resorts.
Should Japan continue its IR gambling and commercial targets, chances are MGM Resorts and Orix will be licensed. The central government will submit IR tenders from the regions next month until April 2022. Economists in the Osaka region believe that MGM’s multi-billion dollar assets will provide much-needed economic diversity.
Considering the prevailing situations of the novel coronavirus, MGM’s resort, announced in the initial phase of this year that it would seek to reduce investment in Osaka. According to the reports, MGM and its ally in Osaka will control 50-50% of the management.
The profit-sharing percentage of the Orix program is believed to be 40-40-20. This means that MGM and Orix will have a 40% stake whereas Japan will get a 20% stake.
MGM CEO said the company’s investment would be around $ 2 billion, with the cap set at $ 2.5 billion.
If MGM-Orix and Osaka are granted one of three IR licenses by the central government of Japan, the casino site will mark the opening date in the last half of this decade.
Although there are three IR licenses and currently only three IR forums, Japan is not required to issue all three licenses.
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