The final piece of the puzzle
While attempts to start development on Japan’s first-ever integrated resort (IR) have run into many roadblocks in recent years, plans are now ramping up. Two of the country’s banks have joined forces to provide the final $3.4bn in funding to the Osaka joint venture project between MGM Resorts International and its local partner ORIX.
biggest co-financing deal that banks have ever agreed to in the nation’s history
The collaboration between Sumitomo Mitsui Banking Corporation and MUFG Bank Ltd is reportedly the biggest co-financing deal that banks have ever agreed to in the nation’s history. A couple of other major companies are on board to provide additional investment for the project, which will cost an estimated $8.2bn.
The project’s timeline
The current plan is to have the IR ready to open by the fall of 2030 and the prep work has already started on the man-made Yumeshima Island. Efforts to firm up the island’s base will continue until April 2027, at which point the actual construction can begin.
Osaka’s IR will have 2,500 rooms in total, encompassing three different hotel brands. It will also have extensive space for convention and entertainment facilities, in addition to the 22,000-square-foot gaming floor. The hope is that about 20 million people will visit the resort each year.
Japan’s only IR project
This will be the first casino in Japan’s history; up to three IR licenses are available. Osaka was the only region to successfully apply for one of the permits, with the central government approving its bid in April 2023.
only other area to submit an official bid was Nagasaki
Other cities and provinces showed interest, but they all dropped out of the race for a variety of reasons. The only other area to submit an official bid was Nagasaki and it decided to end its efforts in March after it was required to completely reapply following issues with the initial proposal. The main stumbling block was uncertainty about its ability to finance the project with its selected partners.