How MGM Resorts International Consortium Can Help Osaka Win a Casino License
Plans for the Japanese gambling market are beginning to take shape.
On September 28, MGM Resorts International (MGMRI) alongside MGM Japan and joint-venture partner ORIX announced that they were selected by the city of Osaka as its official integrated resort partner.
Although Las Vegas-based MGMRI was the only horse in the race, it marks a vital score in the gambling giant’s efforts to complete an integrated betting resort in the country.
With three licenses set to be granted to developers next year, MGM will be hoping that their proposals will be strong enough to land one of them for a state-of-the-art resort in the city.
A Vision for Osaka
The concept is to provide a world-class resort in Osaka that will win the support of the Japanese government.
Just one of three regions competing for a gaming license, Osaka is confident that they can get their hands on the coveted prize.
With other Japanese regions failing to follow through on initial interest, partly due to opposition by citizens, the third most populous city in the country is in a strong position.
By confirming MGM Resorts International and its consortium as the winning bidder, Osaka will now push forward to make things happen.
MGM Closer to Securing Japan Casino License for Osaka
MGM revealed its $10 billion vision to create a development that would result in a world-leading resort in Osaka.
Hoping to benefit from an increase in Japanese tourism, plans include three hotels with a total of 2,500 rooms featuring 400,000 square feet of conference facilities and a theater that can host 3,500 patrons.
MGM Resorts CEO Bill Hornbuckle was delighted with the news.
The application period is set to last between October 2021 to April 2022 where the consortium will be required to iron out all necessary details.
Although specific dates for when the resort could open are clearly unknown, it’s estimated that things could be up and running by the latter half of the decade.
MGM is clearly looking to expand its global reach and the stature of the company will help Osaka get what it is after.
The casino and betting company already has a massive presence in the United States and Macau, China. But with the Chinese government set to crack down on gambling in the former Portuguese colony, shifting attention to Japan is not a bad idea.
Helping Osaka gain one of the first three licenses set to be dished out by Japan could be seismic for the company.
If gambling laws in Japan are completely overhauled, this could potentially give MGM a stake in one of the world’s biggest casino and gaming markets.
Osaka Should Win License Despite MGM Apprehension
The MGM consortium was bound to be selected as the official partner of the Osakan region. After all, there was no other entity in the running.
This allowed MGMRI to pull back on initial plans to pump as much as $9 billion into the proposal. If there was another consortium in the running, they would have more than likely stuck to their original plans for fear of running the risk of losing the bid.
The top score available by judges of the project was 1000. MGM scored a fair 788.5 across numerous criteria. Regardless, it’s safe to say that Osaka has a superb chance of winning a Japanese gaming license with the American powerhouse behind them.
The involvement of MGM makes it almost certain that the city will benefit from one of the licenses on offer. They have the financial clout to ensure that things go according to plan.
Alongside Wakayama and Nagasaki, it’s expected that the region will benefit from the country’s decision to open the gaming market up.
Licenses are set to be awarded by the summer of 2022.