MGM Commits to Integrated Casino Resort in Osaka, Reaffirms Plans Set Earlier This Year

Following a surprising announcement by Las Vegas Sands that they are withdrawing from a race for construction of an integrated resort in Osaka, MGM Resorts International has made it a top priority to make an IR Casino in Osaka a reality.

Until recently, MGM was in two minds about two possible destinations for their next big construction: Yokohama and Osaka, but now it seems they've opted for the latter location. The company has underlined that its Osaka first policy is still very much alive and that they remain deeply committed to it.

Summer Festival Opportunity

MGM has made it quite clear that an Osaka resort is a top priority for long-term development...

...and to prove a point in that regard, the giant gambling brand has taken part in the Senshu Summer Festival that began on August 24th and continued through 25th and 26th.

Comments chairman and CEO of MGM, Jim Murren:

“MGM Resorts remains deeply committed to pursuing an integrated resort in Osaka, Japan. We announced our ‘Osaka First’ strategy and have not wavered from that plan. We have always had confidence in our position, as what we will bring to Osaka is something only MGM Resorts can deliver.

We will bring world class entertainment, exciting cultural events, convention expertise, and premium dining and retail experiences that will have broad appeal both nationally and internationally. We have extensive experience in developing and operating large scale integrated resorts across multiple regions.”

A Fitting Partner

Murren went on to add...

... that MGM plans to develop a “truly unique destination that will generate significant economic activity for the region and increase employment opportunities while delivering an attractive return for all stakeholder.”

He concluded by saying that everyone at the company is excited about the Orix partnership. This successful and esteemed Japanese company has a strong presence in Osaka and they will pursue this venture together with them. They are working on jointly submitting the response to the concept request and are looking forward to the next steps in the process.

What Happened With LVS?

It was announced at the end of last week that LVS is abandoning its Osaka project...

...in order to focus its outlook on Tokyo and Yokohama. This decision comes as a big surprise after several strategic moves already taken for the company to position itself well in this city. Their withdrawal means that MGM is now a clear favorite to win the license.

CEO of LVS, Shaledon Adelson, said that the company plans to shift their focus and strongly reinvest in existing portfolio properties in Macao, Singapore and Las Vegas. He also added, speaking of maintaining industry-leading returns on invested capital that “...we think an investment in Tokyo or Yokohama gives us the best opportunity to do exactly that.”

Japan's Adoption of Western Gambling

Japan, as a very old and very specific culture, has its own customs...

...even when it comes to gambling. For instance, the Western concept of a casino is not common to this nation which legalized casino construction only last year. In the Land of the Rising Sun, it is Pachinko and Pachislots that are the primary form of gambling entertainment.

You can read our exclusive editorial on the most dominant forms of gambling in Japan HERE, as a way of preparation for the opening of what will surely be one of the world's most lucrative casino markets and certainly one of the biggest in Asia.

Source:

“MGM 'deeply committed to Osaka integrated resort'”, casinobeats.com, August 23, 2019.