There are already concerns about timing.
Japan.- Preparatory work has begun for an integrated resort in Osaka. Cement is being poured into the ground on Yumeshima, an artificial island in Osaka Bay.
However, there are concerns about timing. Preparations for an expo to be held next to the site on April 13, 2025 have been set back by rising costs and labour shortages, causing delays to the construction of a pavilion.
MGM Resorts has partnered with Orix Corp, a Japanese company, for the resort and casino. It was expected to cost JPY1.08tn (US$8.38bn). However, the initial investment is expected to rise by JPY190bn (US$1.29bn).
The IR 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. About 20 million people a year are expected to visit, including 6 million visitors from abroad, generating sales of JPY520bn annually, with JPY420bn coming from gambling revenue.
Originally, the prefectural government had envisaged the casino resort’s inauguration in the autumn or winter of 2029. However, there was a delay in getting approval from central government.
When Osaka signed an agreement in September with MGM and Orix, there was a clause that allowed them to cancel the project if costs rose further. However, they will be required to pay a withdrawal penalty.