MGM reportedly forfeits right to withdraw from Osaka casino resort

Japan’s first casino resort likely to open in late 2030 instead of 2029.

Japan’s first casino resort is moving forward as MGM Resorts International has reportedly decided to forfeit its right to withdraw from the project without penalty. This nearly $10 billion development is set to open in Osaka in late 2030.

According to Nikkei Asia, U.S. casino operator MGM Resorts International and its local partner, Orix Corp, which each hold a 40% stake in the project, will commence preparatory work on the integrated resort (IR) at the end of September 2024. This preparatory phase includes essential measures to address land liquefaction and other groundwork.

Osaka officials are considering doubling down on the construction of a casino-centered integrated resort during the 2025 Osaka-Kansai Expo. The international body overseeing world expos, the Bureau International des Expositions (BIE), is pressing for a decision by the end of September on whether to delay the IR construction, which is situated adjacent to the expo venue.

Despite this pressure, Osaka’s prefectural and city governments are hesitant to agree to a full six-month construction halt. They are concerned that such a suspension could incur additional costs exceeding 10 billion yen ($70 million) for the IR operator and are seeking alternative solutions.

Previously, MGM had the option to exit the project up until September 2026 based on conditions such as tourism levels, investment fluctuations, or unexpected site issues. The Nikkei reports that MGM has agreed to forgo this option, aiming to solidify its commitment.

Preparatory work, including land stabilization to prevent liquefaction, has been ongoing since late last year and is expected to continue through the Expo. This work is projected to cost approximately 25.5 billion yen ($173 million) and be completed by April 2027. Other preparatory activities, such as setting up infrastructure and facilities, will be finished by spring 2025.

The construction timeline for the IR has been adjusted, with the project now anticipated to be completed by late 2030, a year later than initially planned.

The opening was originally planned to open during the autumn-winter season of 2029 but it has been postponed to a year later. This is because the central government approved the IR development plan in April, about six months later than the local governments expected.

The Osaka IR is located on Yumeshima, a reclaimed island in Osaka Bay. It will feature a vast complex including hotels, a conference center, a shopping mall, a museum, and a ferry terminal. High-rollers will benefit from an adjacent helicopter pad.

MGM Resorts International and Orix Corporation officially signed the Implementation Agreement for the resort’s development in late September 2023. Once completed, the resort will offer 2,500 hotel rooms, 730,000 square feet of MICE (meetings, incentives, conferences, and exhibitions) space, and numerous tourism facilities showcasing Osaka and Japan’s attractions.

As the project progresses, the Osaka and central Japanese governments are still navigating concerns about potential disruptions to the World Expo. This includes addressing requests from Expo organizers to pause construction temporarily to mitigate noise and visual impact.

Read related article: MGM Osaka casino resort project kicks off construction work at Yumeshima site