As the gambling industry is near legalisation in Japan, MGM announced a millionaire plan to develop it.
Japan.- MGM Resorts International has published its intentions to invest US$10 billion in the first Japanese casino in 2022-23, once the government approves the gaming bill. The Asian country is one of the most expected markets of the casino sector. Legislators will debate the regulation in the following months to legalise the industry before the 2020 Olympic Games.
MGM would set the billionaire plan through publicly traded real estate investment trust, as the Chief Executive Officer James Murren revealed in a statement yesterday. Furthermore, Murren commented that the plan is to invest between US$4.8 billion and US$9.5 billion on an integrated resort, which will feature casinos with hotels, shopping and conference space, in Tokyo, Yokohama or Osaka.
“We think there would be a tremendous amount of demand, and ultimately a public listing of these types of Japanese resorts would be very appealing,” he added. The ambitious project plus the legalisation of casino sector would generate over US$40 billion annually for the Japanese State.
“That could be an interesting way to expand the level of involvement, as there are many investors who are risk averse and looking for yield and others who are more risk tolerant,” Murren explained as he revealed that he envisaged a REIT where an MGM-controlled operating company responsible for expenses and investment would pay rent to a property company owned by private investors and domestic and foreign companies.