Japan to Approve Osaka’s First Casino Resort

According to government sources, the government will soon approve a plan by Osaka Prefecture and the city of Osaka to launch the country’s first casino resort in 2029.

The change coincides with the removal of travel restrictions put in place during the coronavirus pandemic, which has caused some local governments to rethink the idea of luring tourists to a “integrated resort,” also known as an IR, which includes a sizable hotel, conference spaces, and gaming facilities.

Prime Minister Fumio Kishida and the necessary ministers are anticipated to accept the Osaka IR plan during a task force meeting that the central government would hold as early as this Friday, according to the sources.

According to the reports, the facility would be inaugurated on Yumeshima, an artificial island in Osaka Bay, during the fall and winter of 2029.

The resort, which is a joint venture between the American company MGM Resorts International and the Japanese company Orix, is anticipated to draw about 20 million tourists annually and provide 1.14 trillion ($8.5 billion) in economic benefits for the area of western Japan centered on the prefecture.

The task group has received a proposal to host an IR from Nagasaki Prefecture as well, but the sources indicate that it is likely to delay any decision because more time is needed to fully evaluate the proposal’s specifics.

A law allowing for the creation of up to three IRs was passed in 2018. However, public opposition to attempts to boost the economy through casinos was mostly brought on by worries about the detrimental effects of gambling.

Process delays brought on by the pandemic, the withdrawal of foreign operators, and a corruption incident that resulted in the arrest of a senator who supported the licensing of casinos in 2019 all slowed the momentum.

The Osaka plan’s approval, which had been anticipated last year, was also postponed because of worries about Yumeshima’s soil contamination and possibility of liquefaction. According to those with knowledge of the situation, the plan is anticipated to be approved with conditions.