Japan delays Osaka and Nagasaki casino plans over election concerns

Osaka and Nagasaki submitted IR District Development Plans in April 2022.

03/30/23

Japan’s casino resort plans in Osaka and Nagasaki are on hold due to concerns over their influence on local elections.

Japan.- The Japanese government has postponed an announcement regarding the fate of the Integrated Resort (IR) District Development Plans submitted by Osaka and Nagasaki until after local elections in April. There was particularly a concern that political parties in Osaka would make opposition to the IR plans a major issue in the elections for governor and city mayor.

Questions had been raised about the lack of response from national government since both IR proposals have been in the hands of national authorities since April. However, campaigning began across Japan last week head of local elections in nine prefectures on April 9. A second round of local elections to elect mayors and assembly members in cities, towns and villages will take place on April 23.

Osaka has bid to host an integrated resort with MGM Resorts International and ORIX as its IR partner. MGM-Orix has proposed to invest JPY1.08tn (US$8.38bn) with a target opening date is 2029. MGM president and CEO Bill Hornbuckle has said that if approval does not come soon, the objective of a 2029 opening would be missed.

Nagasaki chose Casinos Austria International Japan Inc as its partner for its bid and expects its IR to open in 2027. The planned cost for the development of the IR is JPY438.3bn (US$3.8bn), including JPY175.3bn in equity costs.

There have been questions about funding for the project since Credit Suisse Group had been cited as one of several potential “financial arrangers”. The governor recently stated that he will “collect information” on how the sale of the bank affects the fundraising plan.

In this article:

integrated resorts