MGM is focusing all its energy in Osaka as the Japanese government prepares to select the preferred casino license bidders
Las Vegas casino and hospitality giant MGM Resorts International is working hard to be selected as the preferred developer of an integrated resort in Osaka, the company’s CEO, Jim Murren said on Bloomberg Daybreak: Middle East.
Thanks to a supportive local government and business community, and an already available site for a large-scale MICE development, Osaka is among the favorites in the race for hosting one the nation’s first casino resorts.
The Japanese government legalized casino gambling in December 2016 as the first of a two-step legislative process that would pave the way for the development of three integrated resorts with Las Vegas-style casino gaming in the country. Lawmakers completed the second step last summer when they passed a bill that set the preliminary rules and guidelines under which the properties would be built and operated.
The government will now have to select the preferred locations of the future integrated resorts and the preferred developers and operators of those.
Mr. Murren said that he believes Osaka would be the first integrated resort location to be announced. The MGM Chief Executive further dwelt that they plan to “focus all [their] energy in Osaka”
MGM is not the sole casino and hospitality giant to be keen on leveraging Osaka’s fertile tourism market. The city saw a four-fold surge in foreign visitors over the past five years, thanks to its rich culinary tradition and diverse nearby sights.
According to recent prefectural records, executives from 11 major gaming and hospitality companies have paid 25 courtesy visits to Osaka Governor Ichirō Matsui between 2012 and the spring of 2018. Macau casino giant Melco Resorts & Entertainment and its Las Vegas rival Las Vegas Sands are, too, among the notables that are eyeing Osaka.
Osaka’s Government Prepares to Present RFP
Mr. Murren told Bloomberg that Osaka’s government is expected to present a request for proposals from interested casino operators within the next three to four months and that a decision on the preferred integrated resort developer is likely to be announced about this time next year.
Osaka has won the bid to host World Expo 2025 and the local government has expressed hopes that an integrated resort will become operational before the fair.
It is believed that Osaka’s already has a site for the casino resort in mind could significantly boost its bid. Both the venues for World Expo and the potential MICE property will be built on the artificial Yumeshima island. The island was built in the 1970s ans was initially occupied by chemical factories and shipyards.
It can soon become home to one of Japan’s first integrated resort with a gaming floor, MGM’s CEO believes. The executive told Bloomberg that they have been approaching local businesses and that their Japanese project, if they win approval to materialize it, will be the result from a consortium formed between his company and Japanese entities.
MGM’s push for Japan expansion also manifested in the company’s recently signed agreement to sponsor Major League Baseball’s Opening Series in Japan, which began earlier this week. The agreement provides MGM with large brand exposure among the many Japanese fans of baseball.
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