Operator News
Japan – Casinos Austria and MGM to lead Japan’s casino revolution
By Phil - 27 April 2022
Casinos Austria International and MGM look likely to lead the birth of casino gaming in Japan with both the Nagasaki and Osaka prefectures submitting their area development plans for their respective casino bids to the national government.
With Wakayama withdrawing from the race, Japan will only see two casinos in the first wave rather than the three envisaged. MGM Resorts and ORIX have said they hope to open on Yumeshima Island by the autumn/winter of 2029. They will spend JPY1trn (US$9.09bn) in Osaka. They will also spend US$182m on extending Osaka’s subway to the site of the casino in Yumeshima.
The resort aims to attract 20m visitors each year generating annual sales of JPY 520bn (US$4.1bn) and annual economic ripple effects of JPY 1.14tn (US$9bn). Other members of the consortium include Kansai Electric Power, Panasonic, Kintetsu Group Holdings and NTT West. Other investors include Obayashi, Takenaka Corporation, Taisei Corporation, Osaka Gas, JR West and JTB.
Genting Singapore, Galaxy Entertainment, Las Vegas Sands, Melco Resorts & Entertainment and Wynn Resorts all pulled out of the race at various stages. MGM is hoping the huge investment will see it secure the licence with the aim of opening in 2028. MGM’s President of Global Gaming Development Brian Sandoval said: “Osaka is an incredible city that is passionate about business, food, and having fun. MGM and our Japanese partners intend to deliver a Kansai-focused IR that will wow visitors from far and wide. We expect that the IR will attract both international visitors, as well as people living in the Kansai region and Japanese tourists from other parts of Japan. Regional IRs in the United States, including MGM’s properties in Detroit and Maryland, receive more millions upon millions of visitors every year.” “We want to provide guests with a new IR destination experience that is uniquely Japanese. Japan is advanced in technology innovation. It is also known as the best in class in terms of hospitality, rich in arts, culture and food. We respect the spirit of “Omotenashi” and Japanese vibrant traditions. We have already learned so much from Japan that we have been able to export to other markets in which we operate,” he added. Casinos Austria International Japan and Nagasaki prefecture recently upped the cost of their casino blueprint for Sasebo City at the Huis Ten Bosch theme park to be handed over for consideration by the Japanese government in April to US$3.08bn, much more than any other project overseen by Casinos Austria. Their plans were approved by the Nagasaki prefectural at an assembly meeting held on April the project’s footprint increased to 320,000 sq. m., with the floor area of the entire IR to cover around 550,000 sq. m. It will generate around 10,000 jobs and aims to attract 8.4m people a year. The MICE facility now boasts a unique design with curves. Casinos Austria International has said it plans to operate a three floor, 9,000 square meter casino as part of its project for an integrated resort project in Nagasaki, Japan, with 220 gaming tables and 2,200 slot machines ‘offering a gaming experience of the highest international standards.’ The casino is to be located next to the Huis Ten Bosch theme park, where Nagasaki Prefecture plans to develop an integrated casino resort with eight hotels, multiple conference and exhibition centers as well as a variety of entertainment complexes in cooperation with renowned international and Japanese partners. Austria’s 5-star Hotel Sachar has been confirmed as one of the hoteliers for the project. The latest plans include a cable car to transport guests from the Huis Ten Bosch station with Casinos Austria to spend around US$129 m on infrastructure.