The integrated resort (IR) planned in Japan’s Osaka Prefecture is facing yet another delay. Prefectural authorities announced today the casino project will be postponed yet again as the venue will most likely open sometime in the fall of 2030, at the earliest. The country’s central government received development plans from the local authorities in April last year. At the time, the opening date of the resort was set for the fall or winter of 2029. However, it was not until mid-April of this year that the central government of the East Asian country gave the thumbs up to the submitted development plan, which, in turn, resulted in additional delays.
The authorities of Japan’s third most populous prefecture also unveiled an increase in the original budget allocated to the casino project. The initial plans were to pour ¥1.08 trillion into the planned casino resort. However, this sum has now increased by ¥190 billion to ¥1.27 trillion. This makes for an increase of 17.6% from the previous investment estimates. According to the prefectural government, the increase in the initial investment came as a result of the rising costs of construction materials. The revised project was once again sent for approval to the country’s national government.
MGM and Orix Will Increase Their Share in the Consortium to 42.5% Each
Once approval is granted, the prefectural government will proceed to sign a contract with the integrated casino resort operator, which may happen as soon as this September. The Prefecture has chosen the Nevada-based gambling and hospitality company MGM Resorts International and the Japanese financial services group Orix for the construction and operation of the casino resort. Both companies are major investors in the integrated resort project. The Yumeshima artificial island located in Osaka Bay was selected as the site of the property’s construction.
According to the newly revised plan, the loan portion of the investment required for the construction remains the same at ¥550 billion. The equity portion of the investment, however, will increase by 35.8%, jumping from ¥530 billion to approximately ¥720 billion. The Orix Group and MGM Resorts International, the two main investors in the project, will be responsible for covering the difference in the equity. They will boost their share in the consortium investment, raising it from the original 40% to 42.5% per company.
Non-controlling investors will have their collective interest in the venture shrink from the original 20% to 15%. The revision was announced earlier today after a consultation at the Second Capital Promotion Bureau that was jointly created by the Prefecture and its eponymous capital city. MGM Resorts International previously estimated the project’s value to be approximately $10 billion. The newly announced delay was foreshadowed by a statement made by Governor Hirofumi Yoshimura earlier this summer. Yoshimura warned in July that it would be hard to meet the 2029 deadline, citing the central government’s delay in approving Osaka’s IR District Development Plan as the reason.