GGRAsia – Osaka declares MGM-Orix winner of casino RFP: report

Osaka declares MGM-Orix winner of casino RFP: report

Sep 17, 2021 Newsdesk Japan, Latest News, Top of the deck

The city and prefecture of Osaka in Japan have declared MGM Resorts International and Orix Corp winners of their request-for-proposal (RFP) process regarding the metropolis’ tilt at a casino resort, reported on Thursday the Nikkei Shimbun.

The decision was from the integrated resort developer selection committee established by the local authorities. In Japan, large-scale casino complexes with tourism facilities are known as integrated resorts (IRs).

The MGM Resorts-Orix partnership was the only qualified consortium, following Osaka’s RFP process.

Later this month, Osaka prefecture is scheduled to announce the details of the plan submitted by the consortium, according to the report.

In late July, Osaka disclosed information from the consortium’s RFP, mentioning an investment budget of JPY1 trillion (nearly US$9.1 billion) and an initial opening to be at some point from 2028 at the earliest, to 2030.

According to information collated by GGRAsia’s correspondent, the Osaka authorities’ second set of revised requirements for exhibition and hotel space at the IR is more relaxed than previously announced. The new requirements allow the operator to make gradual expansions.

Regarding exhibition space, the latest terms allow the development of one facility larger than 20,000 square metres (215,278 sq. feet) at the opening.

Within 15 years of the IR opening, total exhibition space must be greater than 60,000 sq ms. Ultmately, it should be more than 100,000 sq ms.

For the hotel portion, the IR must have aggregate accommodation space greater than 100,000 sq ms upon opening. Finally, it should have more than 3,000 rooms.

MGM Resorts is the parent of Macau casino operator MGM China Holdings Ltd. The latter saw its Hong Kong-listed stock fall nearly 27 percent in Wednesday trading, following a Tuesday announcement from the Macau government regarding proposed changes to the legal framework for that city’s casino industry.