MGM Resorts to finalize development agreements in Japan this month

MGM Resorts CEO Bill Hornbuckle is preparing for a significant trip to Japan later this month, where he will finalize two crucial development agreements for MGM’s ambitious $9.3 billion integrated casino resort project in Osaka. This endeavor, undertaken in partnership with Japanese financial conglomerate Orix Corporation, marks Japan’s inaugural casino venture.

Securing Japan’s first casino license in April 2022 was a milestone for MGM, as it allowed them to move forward with their integrated resort plan for Yumeshima, an artificial island situated in Osaka Bay. In this project, MGM and Orix will jointly control 42.5% of the resort, with the remaining 15% ownership distributed among other financial backers such as Panasonic, Kansai Electric, and West Japan Railway.

Hornbuckle recently discussed the MGM Osaka project during the 2023 Bank of American Gaming and Lodging Conference. He acknowledged the project’s delays and redesigns, emphasizing that they are now prepared to commence construction, a process expected to span several years.

MGM has had its sights set on Japan for nearly a decade, and while other casino licenses were authorized in 2018, MGM Osaka remains the sole licensee to date.

Hornbuckle plans to travel to Japan to sign the project’s final two development agreements—a lease for the property and an implementation agreement to initiate construction. These agreements will pave the way for earnest work on the resort, with an estimated opening date around 2030.

The project’s budget has faced inflationary pressures, increasing the cost by over $1 billion. However, Hornbuckle noted that the depreciation of the yen against the US dollar has somewhat offset these challenges. The yen’s purchasing power has declined by more than 25% since November 2020, with one US dollar now equivalent to approximately 146 Japanese yen.

Despite the substantial financial commitment required for MGM Osaka, Hornbuckle remains optimistic, citing Japan’s population of over 100 million, including 19 million in Osaka, as a compelling reason to continue the project. The construction, set on a sprawling artificial island spanning over 100 acres, will involve drilling and cementing the structure’s foundation into bedrock, likely continuing through 2024. By early 2025, the resort’s hard construction is expected to commence, with MGM targeting a grand opening in 2030, making it a remarkable engineering marvel in Japan’s gaming landscape.

Original story by: Casino.org