Years of delay to plans for Japan’s first casino resort won’t have an adverse effect on the project in the long run, Osaka Governor Hirofumi Yoshimura said, as the facility looked set to open in 2030.
(Bloomberg) — Years of delay to plans for Japan’s first casino resort won’t have an adverse effect on the project in the long run, Osaka Governor Hirofumi Yoshimura said, as the facility looked set to open in 2030.
“There would have been a lot of synergy if it could have opened at the same time as the 2025 Osaka-Kansai Expo,” Yoshimura said in an interview Monday. “But a time lag of five years won’t have much effect on the project itself.”
The Osaka plan for a so-called “integrated resort” featuring hotels, entertainment and conference centers as well as a casino, gained government approval in April. Japan will compete with Asian neighbors like Singapore, Macau and South Korea for customers as it seeks to further bolster its tourism industry.
Osaka will seek to distinguish its offering by making the most of the history and culture of the region, and the country as a whole, Yoshimura said, adding he expected the facility to make a substantial contribution to Osaka’s economy.
“Kansai is an area very deep in history,” he said. “Traditional Japanese culture is something you don’t get in Macau, Singapore or South Korea. And those unique points are what we will promote from the resort.”
While politicians have been pushing for casinos for decades, so far no resorts have been built and Japan’s potential gaming market — estimated at $20 billion — has lost some of its luster. At least one company has pulled out and the conviction of a ruling party lawmaker for receiving bribes from a developer soured sentiment nationwide. But polling in Osaka shows opposition to the idea is fading.
MGM Resorts International is partnering with Japanese financial services firm Orix Corp on the project. The initial investment in the resort on Yumeshima, an artificial island in Osaka Bay, will be ¥1.08 trillion ($7.9 billion).
CEO William Hornbuckle said this month construction is likely to begin late this year or early in 2024, with the facility set to open for business in the first half of 2030, indicating a slight further delay from a 2029 target set earlier.
Concern over addiction and public safety contributed to the delay in approval for casinos in Japan, although the country already allows gambling on horse, bike and motorboat racing — while online betting boomed during the pandemic. Pachinko pinball parlors, another form of gambling, are common throughout the country.
“This IR is a very important first step for Japan in terms of changing the impression among the Japanese public,” said Jay Defibaugh, an analyst with CLSA in Tokyo. “That’s certainly what Marina Bay Sands and also the Sentosa project did for Singapore. It helped to bring people in. It helped to change the image of Singapore to a place that people can have more fun.”
–With assistance from Julie Masuda.
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