GGRAsia – Osaka, MGM-Orix sign implementation deal for IR

Osaka, MGM-Orix sign implementation deal for IR

Sep 28, 2023 Newsdesk Japan, Latest News, Top of the deck

The prefectural government of Osaka has signed the implementation agreement with its private-sector partners to develop an integrated resort (IR) in that metropolis, Japan’s first property involving a casino.

The agreement was signed on Thursday by the prefectural authorities and representatives of Osaka IR KK, a venture involving U.S.-based casino operator MGM Resorts International, Japan’s Orix Corp, and other smaller investors.

Also on Thursday, representatives of the city of Osaka signed a leasehold contract with the project’s promoters regarding the land on Yumeshima, an artificial island where the resort is to be built.

Osaka IR KK confirmed the signing of the two agreements in a release in its corporate website.

Jiji Press agency quoted Osaka governor Hirofumi Yoshimura as saying that he expected the integrated resort would “serve as an engine for economic growth” for the region.

Bill Hornbuckle, chief executive and president of MGM Resorts, said during the signing ceremony that “Osaka can and will become an international destination for tourism and the IR can be at the epicentre,” the news agency reported.

“This is a significant moment for our company as we officially close the certification process and begin to focus on executing our vision, in partnership with Orix, to build a world-class integrated resort in Osaka,” said Mr Hornbuckle, in a separate statement.

The authorities in Osaka had confirmed earlier this month that the planned timetable for opening an IR (pictured in an artist’s rendering) has been delayed by one year, to “autumn 2030″, and that the initial investment cost will rise by JPY190 billion (US$1.29 billion), to JPY1.27 trillion.

The Japan Tourism Agency – under the country’s Ministry of Land, Infrastructure, Transport and Tourism – had approved last week the implementation plan submitted by the Osaka authorities.

MGM Resorts’ Mr Hornbuckle said earlier this month that he was supposed to travel to Japan this month to “sign the final two agreements” for the casino scheme.

The IR District Development Plan for Osaka was approved in principle on April 14 by the national authorities, having been submitted to them in April 2022.

(Updated at 9am, Sept 29)