MGM-led consortium waives option to withdraw from Osaka IR development deal
The IR project is scheduled to open in autumn 2030.
Japan.- Osaka IR KK, the entity that will develop an integrated resort (IR) with a casino on Yumeshima island, has reportedly waived its right to terminate the implementation agreement for the project.
Osaka IR KK is a joint venture between MGM Resorts International, Japan’s Orix Corp, and several other Japanese entities as smaller-scale investors. Under the terms of the agreement, the consortium had the option to withdraw without paying compensation if specific conditions such as the tax regime, investment requirements, land improvements and tourist numbers were not fulfilled.
The IR is expected to cost JPY1.27tn (US$ 8.9bn) and is anticipated to generate annual revenue of JPY520bn, of which about 80 per cent is expected to come from the casino. It will also include hotels, shopping areas, convention areas and facilities. Operations are slated to commence by autumn 2030.
In August, the Bureau International des Expositions (BIE) and some business executives in Japan called for a pause in the construction work of the MGM Osaka during the Expo 2025. The event will take place on Yumeshima for 184 days from April 13 to October 13, 2025. According to the Asahi Shimbun, concerns have been raised about potential landscape deterioration and noise pollution on the island due to the construction work for the IR.
