A quarter-century after gambling resorts were first proposed in Japan, officials have finally broken ground on construction of what could become Asia’s highest-grossing casino.
Executives from MGM Resorts International and Orix Corp and local politicians gathered on an artificial island in Osaka Bay on Thursday, breaking barrels of sake to signify a new beginning in Japanese tradition.
The ceremonial event marked the most tangible step that the development has taken towards realisation after years of being beset by delays and scandal.
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“I’ve been working on this for more than 15 years, and no one is more happy than I am to see this happen,” said Ed Bowers, the chief executive officer of MGM Resorts Japan. “It’s not been an easy road, and we will continue to see challenges until and after this opens.”
The ¥1.27 trillion ($9 billion) project, a joint venture of MGM and the local financial conglomerate Orix, is scheduled to open in 2030. It’s likely to become the largest casino in Asia, with an estimated gross gaming revenue of $5.9 billion per year when it opens making Japan the world’s third-largest gaming market after the US and Macau, according to Bloomberg Intelligence.
Last year, the Galaxy Macau was the largest casino in Asia, pulling in roughly $4.5 billion in gross gaming revenue.
In addition to the casino, the development will include three hotels, meeting and convention space, and a concert theatre, along with dining and shopping venues.
It will sit on the outskirts of Osaka Japan’s second largest metropolitan area adjacent to where the 2025 World Expo is now being held for the next six months on the artificial island of Yumeshima. Japan spent about $570 million building up infrastructure to access the area.
Source: Bloomberg
