Japan’s Osaka prefecture said on Wednesday the metropolis (pictured) is planning to up the 2024 budget for its integrated resort (IR) promotion bureau by circa 9 percent year-on-year, to JPY655 million (US$4.4 million).
Osaka is to host the country’s first IR with casino.
The IR promotion bureau was established jointly by the Osaka prefecture and Osaka city governments. Each contributes 50 percent of the bureau’s costs. The Osaka IR is scheduled to open at the start of the next decade.
The allocation amount was mentioned in Osaka prefecture’s draft budget for financial year 2024. According to information from the prefecture lodged online and reviewed by GGRAsia’s Japan correspondent, the IR promotion bureau’s request for funds from the metropolis as a whole was fully supported by the prefecture’s governor, Hirofumi Yoshimura.
From the new IR promotion bureau budget, circa 83 percent, or JPY546 million, would go on personnel costs covering 49 staff. The remaining circa 17 percent, or JPY110 million, would be used for “project costs”.
The breakdown of the latter amount includes JPY73 million for IR progress monitoring, the work of an IR evaluation committee, and communication with the national government. There is JPY33 million for public-relations work related to the IR project; and JPY900,000 for “gambling addiction countermeasures”.
In December, Osaka city’s mayor Hideyuki Yokoyama talked about some of the anticipated economic benefits from the Osaka IR, to be branded MGM Osaka. They included helping the conurbation to attract 20 million foreign visitors annually.
The scheme’s promoter, Osaka IR KK is a venture involving U.S.-based casino operator MGM Resorts International, Japan’s Orix Corp, and other smaller investors. MGM Resorts is the parent of Macau casino concessionaire MGM China Holdings Ltd.
In early September the Osaka authorities had mentioned it would be “autumn 2030” at the earliest before MGM Osaka could open, and that the initial investment cost of JPY1.08 trillion (US$7.59 billion currently) would rise by JPY190 billion.
In early December, work began at the site to guard against the risk of soil liquefaction and to deal with other land issues, according to an announcement at the time by the Osaka city and prefectural authorities.
On February 13 this year, during MGM Resorts’ fourth-quarter earnings call, Bill Hornbuckle, chief executive and president of the casino firm, said the MGM Osaka promoters had “successfully began liquefaction countermeasures in the fourth quarter”, maintaining a schedule to “commence preparatory construction efforts in 2025 on time for 2030 opening”.
