Gaming operator MGM Resorts International stated it expects its potential integrated resort project in Osaka, Japan, to contribute about JPY 106 billion ($774.7 million) yearly to the local authorities in terms of gaming tax and casino entry fees.
The projections came from Ed Bowers, president of global development for the United States-based gaming firm. The executive made the remarks during his keynote speech on the opening day of the three-day G2E Asia 2022 Special Edition: Singapore gaming industry trade show. MGM operates in the region, in Macau, through its MGM China Holdings subsidiary.
Bowers, who is also President and CEO of MGM Resorts Japan, unveiled the progress and details of the resort complex MGM is planning to build with its local partner Orix Corp in a 49-hectare site in Osaka. The MGM-Orix consortium was selected by Osaka prefecture as its private-sector partner in its bid for a Japan IR license.
MGM's Integrated Resort in Osaka (Rendering).
“We’re hoping for an approval later this year”, Bowers stated according to Macau Business, referring to the Japanese national government. “Presently, we’re focused on the preparation of schematic design drawings and on the completion of the geological service of the site.”
The executive added that after the company receives its approval from the central government, it will move into its detailed design work with the intention of breaking ground by mid-2023.
“If approved, we are hopeful to complete the construction and open the IR by the end of 2029,” he stated, and added that this will be the most expensive integrated resort ever built in Asia, as its cost is estimated to be JPY 1 trillion ($7.3 billion).
Even though Bowers commented on the expected contributions of the IR to Japan, he did not address the annual revenue the project can generate. He, however, said MGM anticipates it would exceed those of most of the IRs in Asia. On previous occasions, it was reported that the management of the consortium hoped the resort could come up with annual revenue of JPY 520 billion ($3.7 billion).
The Osaka project will feature three hotel products providing approximately 2,500 rooms, a MICE space of 68,000 square meters, a 3,500-seat theater, various Japanese cultural experiences, retail facilities and others, according to Bowers. It is estimated it will employ about 15,000 people.
The executive noted in his speech that the MGM project in Japan will become “part of the tourism ecosystem” in the country, and stated that the jurisdiction has been “very ambitious: they want to take the best of what was done in Singapore and take it to another level,” the cited source added.
“First they require bidders to deliver integrated resorts that will attract foreign tourists just like Singapore”, he said. “But also require operators to actively promote and send foreign tourists to other attractions in the areas of Japan.”
Speaking of other gaming-related issues, the executive also confirmed that MGM is going to provide “a strong submission to the Macau government” to secure a new gaming license once again. The city’s current six gaming licenses, including that of MGM China Holdings, will expire by the end of this year due to a public tender for 10-year gaming concessions which will start in 2023.
MGM China's Pansy Ho
On Sunday, MGM China announced that Pansy Ho Chiu King will remain the managing director of MGM Grand Paradise for at least another 10 years should the company successfully win a license in the new round of public tender.
In a stock filing to the Hong Kong stock exchange, MGM China Holdings said Ho’s stake in MGM Grand Paradise will also increase to 15% from the present level of 10% to meet the new tender requirements.
