Casino operators have rushed to Osaka, Japan to receive a chance to build an integrated resort in the city. However, city officials have expressed unpreparedness for this decision, and have moved to postpone the process for at least a year.
Earlier this year, Osaka announced its plan to commence selecting the casino IR partner this spring. However, MGM Resorts Chairman and CEO, Jim Murren, have clarified the situation:
“We’re going to know probably in the next three or four months what the timing is going to be for Osaka.”
Reacting on the requests for proposals ordered by the city, Murren added:
“The city government will present an RFP. It will be very competitive. MGM is going to be one of the bidders for that RFP, and I think they will make a decision [on preferred partners] about this time next year.”
Background
Since the first announcement of the integrated resort term, MGM expressed anxiety about inclusion. Murren advises that the imminent decision will probably include some sort of consortium with an interested partner. He added:
“We made the decision to focus all our energy on Osaka… We believe Osaka is going to be the first integrated resort location” in the country. “The government’s very excited about it. They won the World Expo just recently. It’s going to happen in 2025.”
At the moment, three cities are shortlisted for a possible integrated resort location. One of the cities is logically Osaka. Murren continued:
“I am confident Osaka is going to be one of the three. We are working really hard for MGM to be the IR [integrated resort] operator in Osaka. All we can do is work as hard as we can, meet with Japanese companies, form a Japanese consortium: we are trying to outwork our competitors a little bit.”
Expectations
As soon as cities and operators are selected for the integrated resort location, the partnership will wait for Japanese government approval. It is still a long way to the first integrated resort launch. With the current situation in the country, we expect to see the claimed resort in 2024 or 2025.
Source:
“Osaka wonˈt choose a casino partner until 2020“, Erik Gibbs, calvinayre.com, March 22, 2019.
