MGM Resorts International reaffirmed its commitment to pursuing a license for the development of a casino resort in Osaka on the heels of news that rival Las Vegas Sands would abandon its Osaka pursuit to focus its attention on development opportunities in Tokyo and Yokohama.
Japan is set to enter soon the location selection and licensing stage of its multi-year effort to bring integrated resorts with dedicated casino areas to up to three locations around the country. And with the impending start of this stage, a number of casino operators are ramping up their efforts to win a coveted license that would secure them with entry into a market many analysts believe could be worth up to $20 billion.
MGM has long been vocal that it would bid for a license to build a fancy integrated resort in Osaka. The city is believed to be the frontrunner in the casino race and many expect it to be selected by the central government as the host of the country’s first casino complex.
Earlier this year, MGM introduced its ‘Osaka First’ strategy that involves finding local partners to form a consortium that would bid for an Osaka license and focusing efforts and resources on winning that bid.
The company’s Chairman and CEO, Jim Murren, said in a statement issued Thursday that his company “remains deeply committed to pursuing an integrated resort in Osaka” and that they have not wavered from their Osaka First strategy.
Mr. Murren’s statement reads further:
“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. MGM Resorts will 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 stakeholders.”
Earlier this year, MGM announced that it has formed a partnership with Japanese financial company Orix Group to jointly pursue casino development opportunities in Osaka. Orix has a strong presence in the city that it hopes would help it and its partner in their joint pursuit of a casino license.
Rival Sands Sets Sights on Tokyo and Yokohama
MGM reaffirmed its commitment to Osaka as another casino operator previously interested in the city as the potential host for a casino resort said Thursday that it has now set its sights elsewhere.
Las Vegas casino giant Las Vegas Sands said that it has decided to explore development opportunities in Tokyo and Yokohama. Sands’ announcement came just as Yokohama announced that it would bid to be host of one of Japan’s first integrated resorts.
The company’s Chairman and CEO, businessman Sheldon Adelson, said in a statement issued Thursday that
“for the past several years, we have engaged in a conversation with the Osaka government regarding the possibility of building a world-class Integrated Resort there. We thank the people and government there for their professionalism and wish them much success with Expo 2025 and the other initiatives they have planned.”
Las Vegas Sands’ boss went on to say that his company targets
“new development opportunities that allow us to maintain our industry-leading returns on invested capital and we think an investment in Tokyo or Yokohama gives us the best opportunity to do exactly that.”
Osaka is set to host World Expo 2025 and initial hopes were that the city could have an operational integrated resort by 2025. Mr. Murren said in a recent interview that while the 2025 deadline is an ambitious one, it was still possible to be achieved. The executive explained further that while he had no “doubts about the abilities of the architects we have on board, or those of the civil planners and general contractors”, the real challenge “will be getting through the permit process.” That’s in case his company wins the Osaka casino license.
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