MGM expects Osaka IR to contribute US$774.7m in gaming taxes
Ed Bowers, MGM president of global development, made the remarks in a keynote speech on the opening day of G2E Asia 2022.
Japan.- MGM has outlined its expectations for its first integrated resort in Japan at the opening day of G2E Asia 2022. Ed Bowers, president of golbal development, said he was confident the IR could contribute about JPY106bn (US$774.7m) a year through gaming taxes.
MGM Resorts International is part of a consortium with ORIX that was selected as Osaka’s IR partner for its bid to host an IR. MGM-Orix has proposed to invest JPY1tn (US$9.1bn). Bowers said this would make the IR the most expensive ever built in Asia.
He said: “After we receive approval from the central government, we will move into our detailed design work with a view to commencing site work by mid-2023. If approved, we are hopeful to complete the construction and open the IR by the end of 2029.”
The Osaka IR project is set to include three hotel products providing approximately 2,500 rooms, a MICE facility measuring 68,000 square meters, a 3,500-seat theatre, as well as various Japanese cultural experiences and retail facilities. It will also employ about 15,000 people.
A public referendum was rejected earlier this month by the Osaka prefectural assembly on whether or not to allow proposals for an integrated resort. An anti-IR group was seeking a vote on Osaka’s IR plan after surpassing the necessary threshold of 2 per cent of voter signatures.
Following the prescribed procedure, Osaka prefecture’s governor Hirofumi Yoshimura, a pro-casino member of the Osaka Revival Association, submitted a local ordinance on the issue for a vote in the prefectural assembly. However, the proposal was opposed by the Osaka Restoration Association and Komeito, the two main political groups.
During his keynote speech, Bowers also referred to the upcoming gaming concession tender in Macau. He said the company would provide a strong submission to the government to secure a new licence. Casino operators must submit their proposals before September 14.
MGM China has recently shared its financial results for the second quarter of the year, posting revenue of HK$1.12bn (US$143m). That’s a drop of 46.4 per cent quarter-on-quarter and down 53.5 per cent when compared to last year
Pansy Ho to remain as the managing director of MGM Grand Paradise
MGM China has announced that Pansy Ho Chiu King will remain as managing director of MGM Grand Paradise SA for at least another 10 years. The company also announced that she will increase her stake in the casino operator from 10 per cent to 15 per cent.
According to MGM China, the transaction was conducted to comply with a requirement of Macau’s new gaming law, which states that the managing director of gaming concessionaires must be a Macau SAR resident and hold at least 15 per cent of the company’s equity.
MGM Grand Paradise will issue and allocate 4,070,000 A shares and 730,000 B shares to MGM China, of which 730,000 MOP B shares will be transferred to Pansy Ho Chiu King. After the transaction is completed, MGM China will hold 84.6 per cent of the voting rights in MGM Grand Paradise. Ho will hold 15 per cent and MGM Resorts International 0.4 per cent.
