Osaka assigns US$4.5m to IR development in 2023 budget
Osaka IR promotion bureau’s budget is down 6.4 per cent from 2022.
Japan.- Osaka’s prefectural and city authorities have allotted JPY600m (US$4.5m) in the budget for the forthcoming fiscal year to their joint pursuit of an integrated resort (IR) with a casino. According to GGRAsia, this represents a 6.4 per cent decrease from financial year 2022.
The Osaka IR promotion bureau will receive the budget allocation, with JPY115m intended for “political measures” and the remaining funds for personnel expenses. 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 JPY1.08tn (US$8.38bn).
MGM hopes to open the IR by the end of 2029, but president and CEO Bill Hornbuckle has expressed frustration at the government’s lack of response to its proposal, warning that the target could be missed. The licensing process is currently being overseen by the Ministry of Land, Transport and Infrastructure.
The Osaka proposal includes three hotels providing approximately 2,500 rooms, a MICE facility measuring 68,000 square meters, a 3,500-seat theatre and various Japanese cultural experiences and retail facilities. It would employ about 15,000 people.
Nagasaki allocates US$11.4m to IR development in 2023 budget
Meanwhile, Nagasaki Prefecture has allocated JPY1.52bn (US$11.4m) in its draft budget to its plans to host an integrated resort with a casino. Nagasaki is working with Casinos Austria International Japan Inc as its partner for the bid and hopes to open the IR in 2027.
The expected total cost for the development is JPY438.3bn (US$3.8bn), including JPY175.3bn in equity costs. However, funding has yet to be confirmed publicly.