Osaka governor: delay won’t harm integrated resort project

Osaka governor Hirofumi Yoshimura says the delay won’t harm the project’s long-term success.

Japan.- Osaka’s governor Hirofumi Yoshimura has expressed confidence that delay in approving Japan’s first casino resort project won’t hamper its success. Osaka had originally hoped to launch its IR for the 2025 Osaka-Kansai Expo.

In an interview with Bloomberg, Yoshimura said the delay would have minimal impact on the integrated resort’s prospects. Yoshimura emphasised Osaka’s intention to distinguish itself by leveraging the rich history and cultural heritage of the region and the nation as a whole.

Following government approval in April, Osaka’s plans for the integrated resort, encompassing hotels, entertainment venues, conference centres, and a casino, are finally advancing. About 20 million people a year are expected to visit the resort, including 6 million visitors from abroad, generating sales of approximately JPY520bn annually, with JPY420bn from gambling revenue.

The project is worth JPY1.08tn (US$8.38bn) and is backed by a consortium that includes MGM Resorts International and Orix. MGM Resorts CEO Bill Hornbuckle confirmed that construction is slated to commence late this year or early in 2024, with the resort slated to open in the first half of 2030 – a slight delay from the previously targeted 2029 launch.

Public concerns over addiction and public safety contributed to the prolonged approval process. The country currently permits gambling on horse, bike and motorboat racing, and online betting experienced a surge during the pandemic. Pachinko pinball parlours remain widespread but declining in popularity.

See also: Macau to face competition from future Osaka IR, analysts say

Nagasaki IR plans still waiting for approval

Meanwhile, the future of Nagasaki’s IR plans remains uncertain. Japan’s central government has yet to make a decision on the city’s application, and no timeline has been provided.

Nagasaki submitted its IR District Development Plan alongside Osaka’s last year, aiming to partner with Casinos Austria International Japan Inc and open the IR by 2027. However, funding for the JPY438.3bn (US$3.8bn) development has not been publicly confirmed and the delay in approval makes a 2027 opening unlikely.