According to Sanford C. Bernstein, MGM Resorts International may begin work in its Osaka integrated resort by 2021 to complete it by 2025.
Japan.- The casino industry will soon arrive in Japan but it’s still unclear how soon that will be. However, experts believe that MGM Resorts International would begin works in Osaka by 2021.
According to Sanford C. Bernsetin, the company’s schedule sets such date to get it completed by 2025. The firm cites the company’s CFO, Corey Sanders, during a recent meeting in Las Vegas.
“Discussion spanned across MGM’s [MGM] 2020 plan, MGM’s Japan initiatives, current on-the-ground situation in Macau and Hong Kong, and the company’s capital allocation strategy,” analysts Vitaly Umansky, Eunice Lee and Kelsey Zhu said in a note.
As GGRAsia quotes the note, analysts see the market similar to Singapore’s.
“The Japan market should be structurally similar to Singapore and MGM is expecting a return on investment of up to 20%.”
Osaka speeds up
The Japanese government recently released the draft of its IR Basic Plan and surprised the industry. However, regional authorities won’t waste their time and continue to work towards their future bids.
For that matter, Osaka Governor Hirofumi Yoshimura advanced they will launch the IR RFP process before 2020. Moreover, he says the government plans to select Osaka’s IR operator by next boreal spring.
Amid a race to land one of three licences for an IR in Japan, Osaka wants to be ready first. That’s why the authorities have rushed to get their own processes completed first.
MGM is ready to go once Osaka finishes its plans and should it get a licence first.